The December Mortgage Monitor report, released by Lender Processing Services Inc. (LPS), shows that one in every 7.5 homeowners in the U.S. is either behind on mortgage payments or in foreclosure. The report includes data collected through Nov. 30, 2009.
Total delinquencies, excluding foreclosures, increased to a record high 9.97%, representing a month-over-month increase of 5.46% and a year-over-year increase of 21.29%. Loans rolling to a more delinquent status totaled 5.01% compared to 1.52% of loans that improved. Of loans that were current in December 2008, 4.37% were either 60 or more days delinquent or in foreclosure by the end of November 2009 – a rate higher than any other year for the same period, LPS says.
Foreclosure inventories also continued to climb to new highs with November's foreclosure rate at 3.19% – a month-over-month increase of 1.46% and a year-over-year increase of 81.41%. Compared to 2005 levels, foreclosure inventories across all loans are now nearly seven times higher, while jumbo loan foreclosure inventories are nearly 100 times more than levels four years ago.
Foreclosure starts continued to decline as a result of loss mitigation efforts like the federal government's Home Affordable Modification Program and elevated delinquent loan volumes. The reduction in foreclosure starts, combined with the steady increase in the number of seriously delinquent loans, has resulted in an ever-growing shadow inventory of troubled properties, LPS says.
Florida, Nevada, Mississippi, Arizona, Georgia, California, Michigan, Indiana, Ohio and Illinois were identified as the states with the most non-current loans, while North Dakota, South Dakota, Alaska, Wyoming, Montana, Nebraska, Vermont, Colorado, Oregon and Iowa had the fewest. Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
SOURCE: Lender Processing Services