For the first time ever, the monthly figure for bank repossession of residential properties in the United States topped 100,000. According to the market research company RealtyTrac, September witnessed 102,134 home foreclosures in America. The foreclosure rate at such high levels clearly demonstrates the continuing fragility of the U.S. residential property market, ground zero of the ongoing global financial and economic crisis.
The record rate of bank repossession of private homes comes amid a major controversy over sloppy paperwork by financial institutions connected with the massive wave of foreclosures. Many states across America have already announced their intention of investigating banking practices connected with the high rate of foreclosures. There is even talk of a mandatory freeze on foreclosures being imposed on the banks. Should that happen, the already weak American housing market would suffer another major blow.