Mortgage Delinquencies, Foreclosure Inventory Decline in February

March 22, 2012 (Shirley Allen)

Fewer Americans found themselves in mortgage trouble last month as the number of delinquencies declined again in February along with a dwindling number of properties in the foreclosure inventory according to the latest “First Look” Mortgage Report released by Lender Processing Services (LPS).

The percentage of loans that were 30 days or more past due, but not yet in foreclosure, fell from 7.97 percent in January to 7.57 percent in February. The delinquency rate was 14.0 percent lower than what it was in February 2011.

The foreclosure inventory decreased 0.5 percent in February to a total of 2.065 million properties, down from 2.084 million properties in January, a decline of 19,000 properties. Compared to a year ago, there are 0.3 percent fewer homes in the foreclosure inventory.

The number of properties in the shadow inventory also declined, falling from 1.772 million properties in January to 1.722 million properties in February, a decrease of 50,000 properties.

The total number of properties that were either delinquent or in foreclosure declined from 6.082 million in January to 5.846 million in February, a decline of 3.9 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): 7.57% compared to 7.97% in January 2012

Month-over-month change in delinquency rate: -5.0% compared to -2.2% in January 2012

Year-over-year change in delinquency rate: -14.0% compared to -10.5% in January 2011

Total U.S foreclosure pre-sale inventory rate: 4.13% compared to 4.11% in January 2012

Month-over-month change in foreclosure presale inventory rate: -0.5% compared to 1.1% in January 2011

Year-over-year change in foreclosure presale inventory rate: -0.3% compared to -0.1% in January 2012

Number of properties that are 30 or more days past due, but not in foreclosure: (A) 3,781,000 compared to 3,998,000 in January 2012

Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,722,000 compared to 1,772,000 in January 2012

Number of properties in foreclosure pre-sale inventory: (B) 2,065,000 compared to 2,084,000 in January 2012

Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 5,846,000 compared to 6,082,000 in January 2012

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

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