State of foreclosures
Mortgage delinquencies are down nearly a third from their peak in January 2010, according to the latest Lender Processing Services Inc. (LPS) October Mortgage Monitor report which reveals a steady decline in overall delinquency. The total loan delinquency rate in America is currently at 7.93 percent, dropping a full 2 percent from September.
Meanwhile, foreclosure pre-sale inventories have hit a historic high of 4.3 percent of all active mortgages, rising 2.5 percent in October.
The average days delinquent for loans in foreclosure rose to a record 631 days and the average days delinquent for over 90 days fell for a second consecutive month.
Judicial vs. non-judicial
According to LPS, “Judicial versus non-judicial foreclosure processes remain a significant factor in the reduction of foreclosure pipelines from state to state, with non-judicial foreclosure inventory percentages less than half that of judicial states. This is largely a result of the fact that foreclosure sale rates in non-judicial states have been proceeding at four to five times that of judicial. Non-judicial foreclosure states made up the entirety of the top 10 states with the largest year-over-year decline in non-current loans percentages.”
Mortgage originations up
This month’s report also revealed that mortgage originations rose to levels not seen since mid-2010. Mortgage pre-payments have also spiked, according to LPS, as much of the new origination is refinance mortgages of loans mostly originated in 2009 or later.
Florida, Mississippi, Nevada, New Jersey and Illinois had the highest percentage of delinquent loans while North Dakota, Alaska, South Dakota, Wyoming and Montana had the lowest delinquency rates.
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.
