Mortgage Delinquencies Decline but Foreclosures Go Up

February 22, 2012 (Shirley Allen)

Americans did a better job paying their mortgages last month as the number of delinquencies declined from December to January, but more of them saw their homes go into foreclosure according to the latest “First Look” Mortgage Report released by Lender Processing Services (LPS).

The total number of loans that were 30 days or more past due, but not yet in foreclosure, fell from 8.15 percent in December to 7.97 percent in January. The delinquency rate was 10.5 percent lower than what it was in January 2011.

The foreclosure inventory increased 1.1 percent in January to a total of 2.084 million properties, up from 2.066 million properties in December, an increase of 22,000 properties. The foreclosure inventory was still 0.1 percent lower than a year ago.

The number of properties in the shadow inventory declined, falling from 1.792 million properties in December to 1.772 million properties in January, a decrease of 20,000 properties.

The total number of properties that were either delinquent or in foreclosure declined from 6.167 million in December to 6.082 million in January, a decline of 1.4 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): 7.97% compared to 8.15% in December 2011

Month-over-month change in delinquency rate: -2.2% compared to 0.0% in December 2011

Year-over-year change in delinquency rate: -10.5% compared to -7.7% in December 2011

Total U.S foreclosure pre-sale inventory rate: 4.11% compared to 4.15% in December 2011

Month-over-month change in foreclosure presale inventory rate: 1.1% compared to -1.3% in December 2011

Year-over-year change in foreclosure presale inventory rate: -0.1% compared to -1.0% in December 2011

Number of properties that are 30 or more days past due, but not in foreclosure: (A) 3,998,000 compared to 4,101,000 in December 2011

Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,772,000 compared to 1,792,000 in December 2011

Number of properties in foreclosure pre-sale inventory: (B) 2,084,000 compared to 2,066,000 in December 2011

Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 6,082,000 compared to 6,167,000 in December 2011

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

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