Monday, July 9, 2012

Foreclosures — Two Steps Forward, One Step Back

Year-over-year looking good

There were 63,000 foreclosures completed this May — down considerably from the 77,000 completed in May of 2011. CoreLogic reports that the number of homes in foreclosure inventory also went down year-over-year in May, from 1.5 million homes last year to 1.4 million homes this year. (via Trulia)

Month-to-month on the rise

From April to May of this year, also according to CoreLogic, there was about a 1.5 percent increase in completed foreclosures from 62,000 in April to 63,000 in May. (via Trulia)

Foreclosure inventory still high

Lender Processing Services recently issued its May Mortgage Monitor report, which stated that 4.12 percent of all active mortgages are in some stage of foreclosure, while another 3.2 percent are delinquent by 90 days or more. The average is a shade misleading, however, as it doesn’t reflect the dramatic difference between foreclosure inventories in states with judicial foreclosure processes and states with non-judicial processing. (via PR NewsWire)

Judicial states hold more than twice the foreclosure inventory

Judicial states are showing an inventory more than two and a half times that of non-judicial states — an average 6.5 percent of inventory in judicial states is in some state of foreclosure compared to an average of 2.46 percent in non-judicial states. In addition, the percentage of that inventory that is more than two years past due has increased about 50 percent in judicial states since 2008, compared to about a 30 percent increase in non-judicial states. (via Lender Processing Services)

Non-judicial state’s delinquency rates dropping fast

On average, the year-over-year change in non-current loans (30 days or more in delinquency or in foreclosure) in non-judicial states has dropped more than 7 percent. The trend in non-current loans in states with judicial foreclosure processing is also downward, albeit far slower, averaging less than 1 percent. (via Lender Processing Services)

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