Black Knight: Foreclosure Starts Up For Third Month Straight

Posted by Patrick Barnard on August 26, 2014 No Comments
Categories : Mortgage Servicing

The total U.S. foreclosure presale inventory rate fell to 1.85% of all homes with a mortgage in July – a decrease of 1.65% compared to June and a decrease of 34.44% compared to July 2013, according to Black Knight Financial Services' ‘First Look’ report.

As of July, the foreclosure inventory had reached the lowest level since March 2008, according to Black Knight.

Foreclosure starts, however, were up for a third consecutive month. A total of about 90,700 foreclosure starts were recorded in July – an increase of 2.72% compared to June, but a decrease of 19.59% compared to July 2013.

The report does not provide an analysis as to why foreclosure starts have been on the rise.

Meanwhile, the total loan delinquency rate (loans 30 or more days past due, but not in foreclosure) dropped to 5.64% of all homes with a mortgage – a decrease of 1.13% compared to June and a decrease of 12.07% compared to July 2013. The decline in the delinquency rate comes after a slight increase the previous month.

In addition, the prepayment rate increased to 1.05% of all loans – up 10.24% compared to June, but down 41.01% compared to July 2013.

The report is based on data derived from Black Knight's loan-level database, representing approximately two-thirds of the overall market.

About 2.8 million properties were 30 or more days past due but not in foreclosure, in July – down about 34,000 compared to June and down about 344,000 compared to July 2013.

About 1.1 million properties were 90 or more days past due, but not in foreclosure – down about 19,000 compared to June and down about 211,000 compared to July 2013.

About 935,000 properties were in foreclosure pre-sale inventory – down about 16,000 compared to June and down about 471,000 compared to July 2013.

About 3.8 million properties were 30 or more days past due or in foreclosure – down about 49,000 compared to June and down about 814,000 compared to July 2013.

States with the highest percentage of delinquent loans (30-plus days overdue) in July included Mississippi (14.20%), New Jersey (12.44%), Florida (10.91%), Louisiana (10.86%) and New York (10.77%).

States with the lowest percentage of delinquent loans included Alaska (4.05%), Montana (3.94%), Colorado (3.77%), South Dakota (3.60%) and North Dakota (2.56%).

States with the highest percentage of seriously delinquent loans (30-plus days overdue) in July included Mississippi (5.30%), Alabama (3.76%), Rhode Island (3.53%), Massachusetts (3.44%) and Louisiana (3.43%).

To view the full report, click here.

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