Banks Step Up Foreclosure Activity in August

Irvine, CA, Sept. 15, 2011 — Banks have begun pursuing delinquent homeowners more aggressively, setting the stage for a fresh wave of foreclosures, according to RealtyTrac.

Initial default notices surged 33% in August from July, RealtyTrac said.

The increase represents a nine-month high and the biggest gain in four years.

Rick Sharga, a senior vice president at RealtyTrac, said the increase could be the beginning of a new foreclosure trend.

Foreclosure activity began to slow last fall after problems surfaced with the way many lenders were handling foreclosure paperwork.