Tuesday, December 07, 2010

stats on foreclosures

This report is from Lending Processing Services (LPS) issues a monthly Mortgage Monitor which looks at several aspects of mortgage performance. We like to study this report to see what is currently taking place with delinquencies and foreclosures. The November report (which covers through October) had some very interesting information.

http://kcmblog.com/2010/12/06/current-foreclosure-facts-from-lps/

Delinquency Rates

All delinquency statuses are calculated using the MBA methodology based on the payment due date provided by the servicer. Loans in foreclosure are reported separately and are not included in the MBA days delinquent.

Total delinquencies remained relatively stable for the fifth consecutive month and are down 8.4% from the same month last year. Basically, the delinquency challenge is not getting any worse and is leveling off at numbers below where they were last year.

However, these numbers are still 2.7 times historical averages. The number of loans becoming 90 days delinquent still far outnumbers foreclosure starts.

Foreclosure Inventory 

The servicer has referred the loan to an attorney for foreclosure. Loans remain in foreclosure inventory from referral to sale.

Inventory is continuing to rise rather dramatically – up 7.1% since June – and up 5.2% from the same time last year. This is not good news as this inventory will be placed on the market in coming months at discounted prices. That will put downward pressure on all housing values. Inventories are 7.4 times historical averages and continuing to rise.

The two greatest percentage increases in foreclosure inventories since 2008 come from jumbo prime and prime mortgages.

The movement of foreclosed inventory to REO (foreclosed properties on the market) dropped dramatically in October. The monthly decrease could be explained by the moratorium put into effect by some banks because of the robo-signing challenge.

Foreclosure Starts

Any active loan that was not in foreclosure in the prior month that moves into foreclosure inventory in the current month.

There were 263, 251 foreclosures started last month. This is down 4.4% from the previous month but up 2.9% from last year’s numbers. The monthly decrease could be explained by the moratorium put into effect by some banks because of the robo-signing challenge.

Loans NOT Yet in Foreclosure

The percentage of loans not yet in foreclosure that has not had a payment made in over six months.

§ 27.2% of loans 6 months behind are still NOT in foreclosure

§ 21.1% of loans 12 months behind are still NOT in foreclosure

§ 19.2% of loans 18 months behind are still NOT in foreclosure

§ 18.3% of loans 24 months behind are still NOT in foreclosure

Foreclosure Sales 

Any loan that was in foreclosure in the prior month that moves into post-sale status or is flagged as a foreclosure liquidation.

Foreclosure sales plummeted 35% last month. The monthly fall-off could be explained by the moratorium put into effect by some banks because of the robo-signing challenge.

Bottom Line

The delinquency situation seems to be improving. However, it will take some time for the foreclosures to clear. The housing market won’t fully recover until they do.

Joseph C. Murphy, Broker-Associate, BS, Previews Certified

Coldwell Banker Residential Real Estate
11215 State Road 70 Suite 105
Lakewood Ranch, FL 34202

941-780-3260 cell/text
941-739-6777 office
941-739-9120 fax

Posted via email from Joe Murphy Knows Real Estate in Bradenton

1 comment:

Gerry said...

Yes, I agree with the post. One of the strategies of buying repossessed homes that is utilised by most people is investing from the operator ahead of the property foreclosure. When a property foreclosure is imminent, the residence operator will be ready to offer you the house at below industry worth. Thank you for the learning.



foreclosure attorney portcharlotte