Mortgage Foreclosures Down by 18 Percent
Nov 11th, 2015 @ 9:10 PM by Amber Nelson
The number of completed U.S. home foreclosures declined dramatically in the past year as did foreclosure inventory and mortgage delinquencies, according to new data from global property information firm CoreLogic, an indication of a firming economy and improving employment market.
In September 2015 total completed foreclosures fell to 55,000, down 17.6 percent from 67,000 the previous year. Foreclosures have fallen 82.8 percent from their September 2010 peak of 117,438. On a monthly basis, foreclosures did rise 49.5 percent to 55,000 up from August’s 37,000, but the majority of that increase can be attributed to an annual public auction in the Detroit-area of Michigan where thousands of properties were sold.
The number of homes in the foreclosure inventory also decreased, slipping to 470,000 or 1.2 percent of all properties, down from 621,000 homes or 1.6 percent in September 2014.
“The largest improvements in the foreclosure inventory continue to be in judicial states on the East Coast such as Florida and New Jersey,” said CoreLogic Deputy Chief Economist Sam Khater. “While the overwhelming majority of states are experiencing declines in their foreclosure rates, four states experienced small increases compared with a year ago.”
The states with the highest foreclosure rates for the past 12 months were Florida with 91,000, Michigan with 45,000, Texas at 32,000, Georgia at 26,000 and California with 26,000 as well.
Serious mortgage delinquencies also tanked in September, falling 21.2 percent to 1.3 million loans which make up 3.4 percent of all home loans. Serious delinquencies are defined as those with past due balances of 90 days or more. Both the delinquency rate and the foreclosure rate are at their lowest point since December 2007.
“The rate of delinquencies continues to drop back closer to historic norms powered by improved economic conditions and tighter post-recession underwriting standards,” said CoreLogic President and CEO Anand Nallathambi. “As we head into 2016, based on almost every major metric, the fundamentals underpinning the housing market are healthier than any time since 2007.”
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.