Employment, Home Price Gains Improving Foreclosure Picture

by devteam August 12th, 2015 | Share

Completedrnforeclosures in June were down 63.3 percent from the peak reached in September 2010.  That month, just before the robo-signingrnscandal forced a temporary moratorium on foreclosures and slowed the pace goingrnforward, there were 117,119 foreclosure actions completed.  This past June there were 43,000 down 14.8rnpercent from the previous June’s 50,000 actions, however it was an increase ofrn2,000 properties or 4.8 percent from May.</p


The June National Foreclosure Report publishedrnby CoreLogic on Tuesday said there have been 5.8 million foreclosures sincernSeptember 2008 and 7.8 million since homeownership reached an all-time peak inrnthe second quarter of 2004.  Before therndecline in the housing market in 2007 there were typically about 21,000rnforeclosures each month.</p

The nationalrnforeclosure inventory indicates the number of properties in some stage ofrnforeclosure.  It declined by 28.9 percentrnfrom June 2014 to June 2015 and at the end of June included approximately 472,000rnproperties compared to 664,000 homes.  The foreclosure inventory rate, 1.2 percentrnof all mortgaged homes, is the lowest since December 2007. </p

About half of all foreclosuresrnnationally over the 12 months ended in June occurred in five states, Floridarn(102,000), Michigan (46,000), Texas (33,000), California (29,000) and Ohiorn(27,000).  In June the highestrnforeclosure inventories as a percentage of mortgaged homes in June were in NewrnJersey (4.7 percent), New York (3.7 percent), Florida (2.7 percent), Hawaiirn(2.5 percent) and the District of Columbia (2.4 percent).</p


CoreLogic also reports that the numberrnof mortgages that were seriously delinquent (defined as 90 days or more pastrndue, including those loans in foreclosure or REO) declined by 23.3 percent fromrnJune 2014 to June 2015, with 1.3 million mortgages, or 3.5 percent, fallingrninto this category. This is the lowest serious delinquency rate since Januaryrn2008. On a month-over-month basis, the number of seriously delinquent mortgagesrndeclined by 3.4 percent.</p

“The foreclosure rate for the U.S.rnhas dropped to its lowest level since 2007, supported by a continuing declinernin loans made before 2009, gains in employment, and higher housingrnprices,” said Frank Nothaft, chief economist for CoreLogic. “Therndecline has not been uniform geographically, as the foreclosure rate variesrnacross metropolitan areas. In the Denver and San Francisco areas, thernforeclosure rate has fallen to 0.3 percent, whereas in the Tampa market thernrate is 3.5 percent and in Nassau and Suffolk counties it is an elevated 4.8rnpercent.”</p

“Serious delinquency is at thernlowest level in seven and a half years reflecting the benefits of slow butrnsteady improvements in the economy and rising home prices,” said AnandrnNallathambi, president and CEO of CoreLogic. “We are also seeing thernpositive impact of more stringent underwriting criteria for loans originatedrnsince 2009 which has helped to lower the national seriously delinquentrnrate.”

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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