There were about 49,000 completed foreclosures nationwide in June – a 2.7% increase compared to the 48,000 reported in May but down 9.9% from the 54,000 reported in June 2013, according to CoreLogic's National Foreclosure Report.
While the overall decrease in the national foreclosure rate has been encouraging, the rate remains more than double what it was prior to the Great Recession. From 2000 to 2006, foreclosures averaged 21,000 per month, the report notes.
As of June, about 648,000 homes in the U.S. were in some stage of foreclosure, known as the foreclosure inventory, compared to 1 million in June 2013 – a year-over-year decrease of 35%.
The foreclosure inventory in June made up 1.7% of all homes with a mortgage, compared to 2.5% in June 2013.
As of June, the foreclosure inventory had fallen – on a year-over-year basis – for 32 consecutive months, according to the report.
With most of the foreclosure inventory hung up in the courts in the judicial states, it is expected that there will be some slowdown in the rate of improvement.
Mark Fleming, chief economist for CoreLogic, says, ‘There is concern over whether or not we can maintain this pace of improvement as the foreclosure inventory becomes more concentrated in judicial states with lengthier, more complex processes and timelines.’
What's more, there are hundreds of thousands of homeowners facing rate resets on their home equity lines of credit and mortgage modifications over the next several years. It is feared that many of these homeowners have not seen their average family household income increase enough to cover the increases in their mortgage payments.
Anand Nallathambi, president and CEO of CoreLogic, adds that while 32 consecutive months of year-over-year declines in the foreclosure inventory is ‘great news â�¦ that the basic underpinnings of the housing market are strengthening â�¦ there is still work to do.’
According to the report, Wyoming was the only state to see a year-over-year increase in its foreclosure rate in June. It saw a 5.1% increase.
Thirty-six states saw year-over-year declines in foreclosure inventory of greater than 30%, with Arizona and Utah experiencing declines greater than 50%.
April posted the lowest number of completed foreclosures at about 41,000. From there, the rate increased to about 48,000 in May.
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