Veterans Affairs foreclosures push up auction activity

Foreclosure auction activity hit a two-year high on the back of a major jump in repossessions for Veterans Affairs-backed loans, a new report from Auction.com found.

Auction activity rose 19% year-over-year, according to the report, led by a 428% jump in foreclosure sales on VA-backed loans. The report cited the Federal government ending a VA foreclosure moratorium last December as the major reason for the spike.

VA foreclosure auctions still only made up 12% of the completed sales for the quarter, though this was a significant jump from last quarter when these loans were only 6% of the total. Loans sold to the government-sponsored enterprises made up 33% of all auctions, the largest share, while Federal Housing Administration-insured mortgages were 30%.

Meanwhile, private-label mortgages…