About 41,000 foreclosures were completed in May – an increase of 4.1% compared to a downwardly revised estimate of 39,000 in April and a decrease of 19.2% from 51,000 in May 2014, according to CoreLogic.
This is the lowest foreclosure rate since December 2007, the firm says.
As of May, completed foreclosures had decreased 64.9% compared to the peak seen in September 2010, according to CoreLogic.
Also, the national foreclosure inventory declined 1.3% compared to April to reach about 491,000 units. What's more, the foreclosure inventory was down about 1.7% compared to May 2014, when it included about 676,000 homes.
The number of seriously delinquent mortgages (defined as 90 days or more past due, including those loans in foreclosure or real estate owned) in May decreased 3.4% compared to April and decreased 22.7% compared to May 2014. About 1.3 million mortgages, or about 3.5% of all mortgages, fell into this category. This is the lowest serious delinquency rate since January 2008.
‘With three million jobs created during the past year, the improving labor market has helped more borrowers stay current on their mortgage loan,’ says Frank Nothaft, chief economist for CoreLogic, in a release. ‘Because fewer loans are becoming seriously delinquent, the foreclosure inventory has come down to its lowest level in more than seven years, with only 1.3 percent of loans in foreclosure proceedings.’
‘While the nation's seriously delinquent rate – 3.5 percent – is at its lowest level since January 2008, it remains very high in several big markets,’ adds Anand Nallathambi, president and CEO of CoreLogic. ‘The greater New York City region and central Florida continue to have some of the highest serious delinquency rates – almost doubling the national level. Default rates remain elevated in the Chicago and Baltimore metro areas, as well.’
States with the highest number of completed foreclosures for the 12 months ended in May included Florida (104,000), Michigan (46,000), Texas (33,000), California (28,000) and Ohio (27,000). These five states accounted for almost half of all completed foreclosures nationally.
States with the lowest number of completed foreclosures included South Dakota (19), District of Columbia (105), North Dakota (326), Wyoming (498) and West Virginia (500).
States with the most foreclosure inventory as a percentage of all mortgaged homes included New Jersey (4.9%), New York (3.7%), Florida (2.9%), Hawaii (2.5%) and District of Columbia (2.4%).
States with the lowest foreclosure inventory as a percentage of all mortgaged homes included Alaska (0.3%), Colorado (0.4%), Minnesota (0.4%), Nebraska (0.4%) and North Dakota (0.4%).