Delinquencies Continue to Drop, Foreclosure Inventory Hits All-Time High

December 2, 2011 (Shirley Allen)

More Americans continued to pay their mortgages on time, but the eight hundred pound gorilla in the room is the rising inventory of foreclosures according to the Mortgage Monitor Report for October by Lender Processing Services (LPS).

The total number of loans that are 30 days or more past due, but not yet in foreclosure, dropped from 8.09 percent in September to 7.93 percent in October, a decline of 2.0 percent. Mortgage delinquencies are now 28 percent off their peak in January of 2010.

Foreclosure inventories reached an all-time high at the end of October, accounting for 4.29 percent of all active mortgages. Inventories increased from 2.172 million properties in September to 2.210 million in October.

The time from last payment to foreclosure sale averaged 631 days in October, yet another record, and up from 624 days in September. October’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, with non-judicial inventory percentages less than half that of judicial states. Foreclosure sale rates in non-judicial states have been proceeding at four to five times that of judicial states.

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): 7.93% compared to 8.09% in September 2011

Month-over-month change in delinquency rate: -2.0% compared to -0.5% in September 2011

Year-over-year change in delinquency rate: -14.6% compared to -12.7% in September 2011

Total U.S foreclosure pre-sale inventory rate: 4.29% compared to 4.18% in September 2011

Month-over-month change in foreclosure presale inventory rate: 2.5% compared to 1.7% in September 2011

Year-over-year change in foreclosure presale inventory rate: 9.4% compared to 8.9% in September 2011

Number of properties that are 30 or more days past due, but not in foreclosure: (A) 4,088,000 compared to 4,202,000 in September 2011

Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,759,000 compared to 1,844,000 in September 2011

Number of properties in foreclosure pre-sale inventory: (B) 2,172,000 compared to 2,210,000 in September 2011

Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 6,298,000 compared to 6,373,000 in September 2011

States with highest percentage of non-current* loans: FL, MS, NV, NJ, IL (FL, MS, NV, NJ, IL in September 2011)

States with the lowest percentage of non-current* loans: MT, WY, SD, AK, ND (MT, AK, WY, SD, ND in September 2011)

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.

Notes:
(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

Source:
LPS