Data from CoreLogic shows the foreclosure inventory declined by 21.5 percent and completed foreclosures declined by 27.1 percent in October of this year compared with October 2014. The number of completed foreclosures nationwide decreased year over year from 51,000 in October 2014 to 37,000 in October 2015. The number of completed foreclosures in October 2015 was down 68.2 percent from the peak of 117,543 in September 2010.
The foreclosure inventory is the share of all homes at some stage of the foreclosure process, and completed foreclosures reflect the total number of homes actually lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 6 million completed foreclosures across the country, and since homeownership rates peaked in the second quarter of 2004, there have been about 8 million homes lost to foreclosure.
As of October 2015, the national foreclosure inventory included approximately 463,000, or 1.2 percent, of all homes with a mortgage compared with 589,000 homes, or 1.5 percent, in October 2014. This is lowest rate since November 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 19.7 percent from October 2014 to October 2015 with 1.3 million mortgages, or 3.4 percent, in this category. This is the lowest serious delinquency rate since December 2007.
“Improved economic conditions and more foreclosure completions have pushed the foreclosure rate lower,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The national unemployment rate declined to 5.0 percent in October, the lowest since December 2007, and the CoreLogic national Home Price Index has risen 37 percent from its trough.”
“We are heading into 2016 with the lowest foreclosure inventory in eight years thanks to escalating home values and progressive improvement in the U.S. economy. A large proportion of the remaining foreclosure inventory is clustered in New York, New Jersey and Florida,” said Anand Nallathambi, president and CEO of CoreLogic. “Equally encouraging is the drop in mortgage delinquency rates reflecting the stronger labor market and tighter underwriting since 2009.”
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.