New numbers show Treasure Valley foreclosure filings are down this year but could spike in the coming months.
According to Idaho Data Providers, 158 notices of default were filed in April, which is a 33 percent decrease over notices filed in March 2011. In Ada County, filings were up 7 percent with 335 notices in April, over 312 in March. Combined default filings for Ada and Canyon counties during the first quarter of 2011 were 1,565, compared to 2,405 during the same period in 2010.
Idaho Data Providers President Charlie Nate said that while Treasure Valley foreclosures are lower than this time last year, those numbers could likely spike again.
“Foreclosures are down in 2011, but are poised to bounce back anytime while banks wrap up their robo-signing issues,” Nate said.
In October, Idaho joined a multi-state group investigation led by Iowa’s attorney general, which began to review a number of loan servicers that may have created documents with errors in them. The process of employees signing documents without reading or understanding them is referred to as “robo-signing.” Some paperwork may have also been signed without a notary.
During the investigation, some foreclosure filings were halted, which Nate said could flood the market later this year.
“More inventory will likely be released, which in my opinion could boost filings across the board,” he said.