November 2, 2011 (Chris Moore)
Monthly foreclosure starts declined in September but foreclosure timelines continue to grow especially in states that utilize the judicial foreclosure process according to the Mortgage Monitor Report for September by Lender Processing Services (LPS).
Foreclosure starts declined by 11.2 percent from August to September, which was slightly below the three year average. A total of 220,273 foreclosure starts were initiated in September, down from 247,957 in August, which had posted the highest amount of foreclosure starts this year.
The time from last payment to foreclosure sale averaged 624 days in September, up from 611 in August, yet another record. September’s data continues to show significant differences in foreclosure timelines between states that use the judicial foreclosure process and states that use the non-judicial foreclosure process.
The average timeline from last payment to foreclosure sale in states that utilize the judicial foreclosure process was 761 days in September, while states that utilize the non-judicial foreclosure process had an average timeline of 565 days.
Seven of the ten states that have the highest percentage of non-current loans are judicial foreclosure states. Foreclosure inventories in judicial states are more than double that of non-judicial states and while foreclosure inventories in non-judicial states has remained steady since 2009, foreclosure inventories in judicial states continues to steadily climb.
Almost 40 percent of the loans in foreclosure nationwide have not made a payment in two years while 72 percent have not made a payment in a year or more.
The rate of new problem loans, those that were current six months ago but are now 60 days or more delinquent, has increased sharply over the last two months, jumping up to 1.6 percent of current loans, while first time delinquencies have climbed from 22 percent of all delinquencies in April to 26 percent in September.
Earlier highlights from LPS’s “First Look” report include:
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 8.09% compared to 8.13% in August 2011
Month-over-month change in delinquency rate: -0.5% compared to -2.5% in August 2011
Year-over-year change in delinquency rate: -12.7% compared to 4.11% in August 2011
Total U.S foreclosure pre-sale inventory rate: 4.18% compared to 4.11% in July 2011
Month-over-month change in foreclosure presale inventory rate: 1.7% compared to 0.1% in August 2011
Year-over-year change in foreclosure presale inventory rate: 8.9% compared to 8.2% in August 2011
Number of properties that are 30 or more days past due, but not in foreclosure: (A) 4,202,000 compared to 4,249,000 in August 2011
Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,844,000 compared to 1,866,000 in August 2011
Number of properties in foreclosure pre-sale inventory: (B) 2,172,000 compared to 2,148,000 in August 2011
Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 6,373,000 compared to 6,397,000 in August 2011
States with highest percentage of non-current* loans: FL, MS, NV, NJ, IL (FL, MS, NV, NJ, IL in August 2011)
States with the lowest percentage of non-current* loans: MT, AK, WY, SD, ND (MT, WY, AK, SD, ND in August 2011)
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
(1) Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets.
(2) All whole numbers are rounded to the nearest thousand.
Tags: LPS, mortgage delinquency rate, foreclosure inventory, non-current loans