Loan Delinquencies Decline for Another Month, Foreclosure Inventory Climbs Again

November 21, 2011 (Shirley Allen)

More Americans are paying their mortgages on time, but more of those who didn’t are finding their homes in foreclosure according to the latest “First Look” Mortgage Report released 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. The delinquency rate in September was 14.6 percent lower than what it was in September 2010.

More mortgages reached the foreclosure stage in October, increasing from 2.172 million properties to 2.210 million, a gain of 38,000 properties, while the number of properties in the shadow inventory got smaller, decreasing from 1.844 million properties to 1.759 million properties, a decline of 85,000 properties.

The total number of properties that were either delinquent or in foreclosure declined from 6.373 million in September to 6.298 million in October, a decline of 1.2 percent.

The “First Look” report contains highlights of the company’s forthcoming Mortgage Monitor report which will provide a more in-depth review including an analysis of data supplemented by in-depth charts and graphs that reflect trend and point-in-time observations.

Early highlights of the 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