Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

5.6 million mortgages in America are delinquent

Although foreclosure sales have slid and inventory levels have increased, the housing sector continues showing signs of improvement, but much of the recovery for delinquent loans depends upon what type of state each loan is in.

Foreclosure sales slump to December 2010 levels

According to the Lender Processing Services (LPS) Mortgage Monitor report, March foreclosure starts rose 8.1 percent from the previous month, remaining 31 percent below March 2011 levels, and first-time foreclosure starts hit a five month high. LPS notes that despite the increase, the number of first-time foreclosure starts in March was still far below those seen throughout much of 2011 and all of the previous three years. The total U.S. loan delinquency rate is now at 7.09 percent, or 5,591,000 loans delinquent or in foreclosure, which is down 6.3 percent from February.

Foreclosure inventory levels remain steady ad their historically high levels maintained since the end of 2010, with varying performance rates betwen judicial and non-judicial foreclosure states. Inventory levels at judicial states are at 6.5 percent while non-judicial state levels are at 2.45 percent (2.5 times lower than judicial states’ levels), with the total U.S. foreclosure pre-sale inventory rate hitting 4.14 percent, down 0.1 percent from the month prior.

Florida, Mississippi, New Jersey, Nevada and Illinois have the highest percentage of non-current loans, LPS reports, while Montana, Alaska, South Dakota, Wyoming and North Dakota have the lowest percentage of non-current loans.

LPS’ Mortgage Monitor report reveals that mortgage delinquencies have continued to slide, reaching their lowest level since August 2008, with loans 90+ days delinquent falling across the board. The rate of loans that were current six months ago but are now delinquent continues to improve nationally, but LPS observes that “the LPS March mortgage performance data did show that foreclosure sales continued to behave somewhat erratically, dropping to their lowest level since December 2010, and most sharply in non-judicial states.”

Advertisement. Scroll to continue reading.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

17 Comments

17 Comments

  1. Greg Cook

    May 2, 2012 at 2:06 pm

    I must be missing something. More than two million foreclosures that haven’t hit the market, more than 5 million delinquent and there’s a shortage of inventory?

Leave a Reply

Your email address will not be published.

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Real Estate Technology

(TECH NEWS) It turns out that Internet of Things, like smart bulbs in homes, are not secure and give up your info - here...

Real Estate Marketing

(MARKETING) Your fancy, self-animating website might be making people violently ill, even if it is insanely beautiful. Sorry...

Real Estate Marketing

(MARKETING) Conduit is a CRM that does more than CRM, it analyzes your networking data to help you see how to improve your relationships.

Real Estate Corporate

(REAL ESTATE) Zillow has long been a data powerhouse, but a lawsuit about a $150M listing offers a look into listings claims.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.