Mortgage Delinquencies Decline but Foreclosures on the Rise

October 24, 2011 (Shirley Allen)

Monthly mortgage delinquency rates declined by 0.5 percent in September but the number of homes advancing into foreclosure increased according to the latest “First Look” Mortgage Report released by Lender Processing Services (LPS), which is derived from its loan-level database of nearly 40 million loans.

The total number of loans that are 30 days or more past due, but not yet in foreclosure, dropped from 8.15 percent in August to 8.09 percent in September, a decline of 0.5 percent. The delinquency rate in September was 12.7 percent lower than in September 2010.

More mortgages reached the foreclosure stage in September, while the shadow inventory got smaller, as the number of properties that were 90 days or more past due, but not in foreclosure, decreased by 22,000 while the number of homes in the foreclosure pre-sale inventory increased by 24,000 properties,

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): 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.

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