Foreclosure Inventory Rapidly Disappearing
More than a quarter of the national foreclosure inventoryrnthat existed in May 2014 had been absorbed by May of this year and completedrnforeclosures saw only slightly less improvement. CoreLogic said today that the inventory ofrnproperties in the process of foreclosure, which had totaled 676,000 homes arnyear earlier had dropped to 491,000 by May 2015, a decrease of 27.4rnpercent. Homes in foreclosure which hadrnrepresented a rate of 1.7 percent of mortgaged homes declined to 1.3 percent. The largest foreclosure inventories as arnpercent of mortgage homes were in NewrnJersey (4.9 percent), New York (3.7 percent), Florida (2.9 percent), Hawaiirn(2.5 percent) and District of Columbia (2.4 percent).</p
Therernwere 41,000 completed foreclosures in May, down from 51,000 the previous year,rna 19.2 percent decrease and 64.9 percent fewer foreclosures than at the peak ofrnactivity in September 2010. Foreclosurernactivity did increase from April 2015 to May by 2,000 units or 4.1rnpercent. Asrna basis of comparison, completed foreclosures averaged 21,000 per monthrnnationwide between 2000 and 2006. Half ofrnall completed foreclosures during the 12 months ended in May were in fivernstates: Florida (104,000), Michiganrn(46,000), Texas (33,000), California (28,000) and Ohio (27,000). </p
The serious delinquency rate (90 orrnmore days past due or in foreclosure) is now at a more than seven year low withrn1.3 million mortgages or 3.5 percent of borrowers in this category. This is an annual decline of 22.7 percent andrnthe lowest rate since January 2008. rnDelinquencies fell by 2.4 percent on a month-over-month basis.</p
“With three million jobs createdrnduring the past year, the improving labor market has helped more borrowers stayrncurrent on their mortgage loan,” said Frank Nothaft, chief economist forrnCoreLogic. “Because fewer loans are becoming seriously delinquent, thernforeclosure inventory has come down to its lowest level in more than sevenrnyears, with only 1.3 percent of loans in foreclosure proceedings.”</p
“While the nation’s seriouslyrndelinquent rate-3.5 percent-is at its lowest level since January 2008, itrnremains very high in several big markets,” said Anand Nallathambi, presidentrnand CEO of CoreLogic. “The greater New York City region and centralrnFlorida continue to have some of the highest serious delinquency rates, almostrndoubling the national level. Default rates remain elevated in the Chicago andrnBaltimore metro areas as well.”
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