July 11, 2012 (Shirley Allen)
Foreclosures sales rose by 10 percent in May while mortgage delinquencies increased for the second consecutive month, rising 1.1 percent from April, according to the latest Mortgage Monitor Report released by Lender Processing Services (LPS).
By the end of May, states that utilize the judicial foreclosure process had over two-and-a-half times as many homes in some stage of foreclosure than states that utilize the non-judicial foreclosure process.
In judicial states, 6.5 percent of all loans were somewhere in the foreclosure pipeline compared to 2.5 percent in non-judicial states. Foreclosure sales during May were three times higher in judicial states than non-judicial states with 6.46 percent of the existing foreclosure inventory in judicial states progressing to foreclosure sales compared to 2.14 percent in non-judicial states.
The nation’s foreclosure inventory fell from 4.14 percent to 4.12 percent of all active loans in May, still near all-time highs.
The foreclosure inventory decreased in May to a total of 2.027 million properties, down from 2.048 million properties in April, a decline of 21,000 properties. The foreclosure inventory was 1.0 percent lower than a year ago.
The number of properties in the shadow inventory also declined, falling from 1.595 million properties in April to 1.575 million properties in May, a decrease of 20,000 properties.
The total number of properties that were either delinquent or in foreclosure declined from 5.570 million in April to 5.569 million in May.
Meanwhile, the percentage of loans that were 30 days or more past due, but not yet in foreclosure, increased from 7.12 percent in April to 7.20 percent in May, the second consecutive increase in the delinquency rate following nine months of declines. The delinquency rate was still 9.6 percent lower than what it was in May 2011.
Earlier highlights from LPS’s “First Look” report include:
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 7.20% compared to 7.12% in April 2012
Month-over-month change in delinquency rate: 1.1% compared to 0.4% in April 2012
Year-over-year change in delinquency rate: -9.6% compared to -10.6% in April 2011
Total U.S foreclosure pre-sale inventory rate: 4.12% compared to 4.14% in April 2012
Month-over-month change in foreclosure presale inventory rate: -0.5% compared to 0.0% in April 2012
Year-over-year change in foreclosure presale inventory rate: 0.2% compared to 0.0% in April 2011
Number of properties that are 30 or more days past due, but not in foreclosure: (A) 3,542,000 compared to 3,522,000 in April 2012
Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,575,000 compared to 1,595,000 in April 2012
Number of properties in foreclosure pre-sale inventory: (B) 2,027,000 compared to 2,048,000 in April 2012
Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 5,569,000 compared to 5,570,000 in April 2012
States with highest percentage of non-current* loans: FL, MS, NJ, NV, IL (FL, MS, NJ, NV, IL in April 2012)
States with the lowest percentage of non-current* loans: MT, AK, SD, WY, ND (MT, AK, SD, WY, ND in April 2012)
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
(1) Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets.
(2) All whole numbers are rounded to the nearest thousand.
Tags: LPS, mortgage delinquency rate, foreclosure inventory, non-current loans