Delinquent mortgages dropped to their lowest level since November 2008 according to recent research by CoreLogic.
At the end of August, the company found there were approximately 2.1 million mortgages, or 5.3 percent of all outstanding home loans, in serious delinquency (defined as 90 days or more past due, including those loans in foreclosure or REO). The rate of seriously delinquent mortgages is at its lowest level since December 2008.
CoreLogic also reported a drop in completed foreclosures in August of 34 percent year-over-year. Foreclosures were only 1.3 percent higher from the previous month. The data shows 48,000 foreclosures were completed in August.
The news is no surprise to analysts who continue to see improving foreclosure inventory numbers industry-wide. Since the genesis of the financial crisis, approximately 4.5 million foreclosures have been completed.
“A surge in completed foreclosures and a rise in the foreclosure inventory is unlikely given continued house price improvements and shortages of supply in many markets,” said Dr. Mark Fleming, chief economist for CoreLogic.
In the middle of Q3, approximately 939,000 homes in the U.S. were in some stage of foreclosure, a 33 percent decline from the 1.4 million households facing foreclosure in August 2012. This decline lowered the foreclosure inventory by 454,000 homes in August year-over-year.
“The foreclosure inventory continues to improve, as exhibited by these recent numbers,” Fleming said.
Florida led the nation in both volume of foreclosure inventory (7.9 percent) and highest number of completed foreclosures (111,000).
According to CoreLogic’s research, Florida, Michigan, California, Texas, and Georgia account for almost half of all U.S. completed foreclosures.
Wyoming had the lowest foreclosure inventory levels (0.4 percent) and D.C. had the lowest number of completed foreclosures (94) during the 12 months ending in August.
By Ashley Harris