Foreclosure timelines continue to increase, with the average number of days delinquent in five judicial foreclosure states (New York, Florida, New Jersey, Hawaii and Maine) exceeding 500 days, Lender Processing Services (LPS) reports in its September Mortgage Monitor.
At the same time, the foreclosure timeline extension has been significantly more pronounced in nonjudicial states.
Approximately 275,000 loans started foreclosure in September and, while delinquencies in September dropped 7.8% as compared to a year ago, in the context of ‘normal market conditions,’ delinquencies remain at historically high levels, and foreclosure inventories are only slightly below all-time highs, LPS explains. More than 4.3 million loans are 90 or more days delinquent or in foreclosure.
Timelines in the 90+ days delinquency category have continued to increase even as inventories have declined. As of the end of September, 32% of 90+ day delinquencies could be categorized as ‘extremely delinquent,’ with borrowers not having made payments for 12 months or more.
The average days delinquent for loans in the 90+ days delinquency category is 316 days, and the loans in foreclosure have not made a payment, on average, in 484 days, or roughly 16 months.
This month's report also shows that approximately 1.13 million loans that were current at the beginning of this year are at least 60 days delinquent or in foreclosure as of the end of September – a month-over-month increase of approximately 120,000 loans. The last two months have seen an increasing trend in this new-problem-loan category -1.84% of loans that were current six months ago are 60 or more days delinquent today.
SOURCE: Lender Processing Services