Foreclosure Sale Rate In Judicial States Increased 17% In April

Posted by Patrick Barnard on June 06, 2013 No Comments
Categories : Residential Mortgage

The foreclosure sale rate in judicial foreclosure states rose nearly 17% from March to April, reaching its highest point since the fall of 2010, according to Lender Processing Services' monthly Mortgage Monitor report.

The foreclosure process in non-judicial states is more rapid, LPS noted in the report. The rate of foreclosure sales in non-judicial states, while faster to complete, also increased, albeit at a much slower pace. The disparity in how long it takes to complete the process is, in turn, creating a disparity in the foreclosure sale rate between judicial and non-judicial states.

However, the steady return to a relative degree of normality in the foreclosure sale rate has helped to bring down foreclosure inventories, noted Herb Blecher, senior vice president of applied analytics at LPS.

Nationally, foreclosure inventory was at 3.2% in April, its lowest point in four years.

‘The situation is far from resolved,’ Blecher said in a press release. ‘Foreclosure inventories in judicial states are still more than three times the size of those in non-judicial states, and national inventories are still more than seven times pre-crisis levels. Additionally, recently announced moratoria will need to be monitored to determine the impact on timelines, as well as the rate of the improvement trend.’

As of April, the total U.S. loan delinquency rate stood at 6.21%, according to LPS. The delinquency rate dropped 5.81% from March to April.

The total U.S. foreclosure pre-sale inventory rate was 3.17%. It dropped 5.83% from March to April.

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