More Delinquent Home Loans Entering Foreclosure Pipeline in August

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According to Jacksonville-based Lender Processing Services' (NYSE: LPS) latest First Look Mortgage Report, mortgage performance statistics derived from their database of nearly 40 million mortgage loans showed an acceleration of U.S. home loan delinquencies entering the foreclosure process in August 2010.

"The fact that we're seeing foreclosure inventories rising is more a factor of process than increasing deterioration," explains Herb Blecher, Senior Vice President of LPS Applied Analytics, "Loans that have been delinquent for a historically long period of time are just now beginning to move through the pipeline. As of July 2010, the average length of time a loan in foreclosure had been delinquent was nearly 470 days."

Blecher further commented, "Now, after the intensive efforts of the last year or two, remaining home retention options appear to be exhausted and servicers are beginning to process more of these seriously delinquent loans."

This report correlates with RealtyTrac's latest U.S. foreclosure report for August which also showed a record number of homes entering the foreclosure process.

Orlando Realtor Tonya Giddens commented, "Given this country's continued high unemployment rates coupled with the growing number of strategic defaults by families in many U.S. cities with negative home equity, these growing foreclosure numbers don't surprise me anymore."

LPS Report Highlights:

• Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 9.22%
• Month-over-month change in delinquency rate:  -1.0%
• Year-over-year change in delinquency rate:  -5.1%
• Total U.S foreclosure pre-sale inventory rate:  3.80%
• Month-over-month change in foreclosure presale inventory rate:  1.5%
• Year-over-year change in foreclosure presale inventory rate:  4.9%
• Number of properties that are 30 or more days past due, but not in foreclosure: (A) 4,947,000
• Number of properties that are 90 or more days delinquent, but not in foreclosure: 2,374,000
• Number of properties in foreclosure pre-sale inventory: (B) 2,038,000
• Number of properties that are 30 or more days delinquent or in foreclosure:  (A+B) 6,985,000
• States with highest percentage of non-current* loans: FL, NV, MS, GA, IL
• States with the lowest percentage of non-current* loans: MT, WY, AK, SD, ND

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.

See related REAL ESTATE CHANNEL post:
 
August Home Foreclosures Up Again, Says New RealtyTrac Report





 

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