There were about 36,000 completed foreclosures in August – a slight increase of less than 1% from July but a decrease of 20.1% from the 46,000 reported in August 2014, according to CoreLogic.
What's more, the number of foreclosures nationwide as of August decreased 68.9% from the peak in September 2010, according to the firm's National Foreclosure Report.
As of August, the national foreclosure inventory included approximately 470,000, or 1.2% of all homes with a mortgage, compared with 629,000 homes, or 1.6%, in August 2014 – a decrease of 25.2%.
The report also says that the number of mortgages in serious delinquency (defined as 90 days or more past due, including those loans in foreclosure or real estate owned) declined by 20.7% from August 2014 to August 2015 with 1.3 million mortgages, or 3.5%, in this category. This is the lowest serious delinquency rate since January 2008. The foreclosure rate was at 1.2% as of August, which is back to January 2008 levels.
‘Mortgage performance continues to improve; however, there is a dichotomy between the performance of recently originated loans and legacy loans. Newly delinquent loans are at the lowest rates during the last two decades. That reflects the tight underwriting and improved economy during the last few years,’ says Frank Nothaft, chief economist for CoreLogic. ‘However, the foreclosure pipeline of legacy loans remains elevated. Over the last 12 months, there have been 500,000 completed foreclosures – more than double the number during normal periods.’
‘In August, the housing market experienced solid and steady increases in sales, prices and performance, and our preview data indicates those trends will continue in September,’ says Anand Nallathambi, president and CEO of CoreLogic. ‘Longer term, the recent increase in household formations and rapidly improving labor market for millennials will provide a demographic tailwind to the housing market and keep demand firm.’
States with the highest number of completed foreclosures for the 12 months ended in August included Florida (94,000), Michigan (47,000), Texas (32,000), California (27,000) and Georgia (26,000). These five states accounted for almost half of all completed foreclosures nationally.
States with the lowest number of completed foreclosures included South Dakota (45), the District of Columbia (116), North Dakota (319), Wyoming (492) and West Virginia (544).
States with the highest foreclosure inventory as a percentage of all mortgaged homes included New Jersey (4.6%), New York (3.7%), Florida (2.6%), Hawaii (2.5%) and the District of Columbia (2.4%).
States with the lowest foreclosure inventory included Alaska (0.3%), Minnesota (0.4%), Arizona (0.4%), Colorado (0.4%) and Nebraska (0.4%).