RealtyTrac says 2,628 homes got a foreclosure filing in the Sacramento area last month. That's a 14.4% increase from the month before.
The research firm defines "foreclosure filings" as bank repossession, auctions on foreclosed homes and default notices. Those notices are typically the first step in the foreclosure process.
RealtyTrac's Daren Blomquist says the Sacramento region posted a 40% increase in default notices from September to October…year-over-year, it was a 13% increase.
"It's not just a one month anomaly but we're even above year-ago levels. And it unfortunately foreshadows some more distress in the market over the next few months as those new foreclosures make their way through the process."
Blomquist says foreclosure activity slowed a year ago after paperwork problems surfaced with the way many lenders were handling repossessions. Now, banks appear to be working through a backlog of homes with mortgages that have gone unpaid.