Data from CoreLogic shows that the foreclosure inventory declined by 27.9 percent and completed foreclosures declined by 24.4 percent since July 2014. The number of foreclosures nationwide decreased year over year from 50,000 in July 2014 to 38,000 in July 2015, representing a decrease of 67.9 percent from the peak of 117,225 completed foreclosures in September 2010.
Completed foreclosures are an indication of the total number of homes lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 5.8 million completed foreclosures across the country, and since homeownership rates peaked in the second quarter of 2004, there have been approximately 7.8 million homes lost to foreclosure.
As of July 2015, the national foreclosure inventory included approximately 469,000, or 1.2 percent, of all homes with a mortgage compared with 650,000 homes, or 1.7 percent, in July 2014. The July 2015 foreclosure rate is the lowest since December 2007.
CoreLogic also reports that the number of mortgages in serious delinquency (defined as 90 days or more past due, including those loans in foreclosure or REO) declined by 23 percent from July 2014 to July 2015 with 1.3 million mortgages, or 3.4 percent, falling into this category. This is the lowest serious delinquency rate since December 2007.
“Job market gains and home-price appreciation help to push serious delinquency and foreclosure rates lower. The CoreLogic national HPI™ showed home prices in July rose 6.9 percent from a year earlier, building equity for homeowners,” said Frank Nothaft, chief economist for CoreLogic. “Further, 2.4 million jobs were created, pushing the unemployment rate down from 6.2 percent in July 2014 to 5.3 percent this July and supporting family income growth for most owners.”
“As we enter the final months of 2015, the housing market continues to gather steam buoyed by improving economic conditions and the release of pent up demand for homeownership,” said Anand Nallathambi, president and CEO of CoreLogic. “The recovery in the housing market is also reflected in declining delinquency and foreclosure rates which, to some degree, reflects the progressive clearing of crisis-era loans and the benefits of tighter underwriting standards over the past six years.”
About The Author
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at firstname.lastname@example.org.