CoreLogic data shows the foreclosure inventory declined by 21.8 percent and completed foreclosures declined by 18.8 percent compared with November 2014. The number of completed foreclosures nationwide decreased year over year from 41,000 in November 2014 to 33,000 in November 2015. The number of completed foreclosures in November 2015 was down 71.6 percent from the peak of 117,657 in September 2010.
The foreclosure inventory represents the number of homes at some stage of the foreclosure process and completed foreclosures reflect the total number of homes 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 November 2015, the national foreclosure inventory included approximately 448,000, or 1.2 percent, of all homes with a mortgage compared with 573,000 homes, or 1.5 percent, in November 2014. The November 2015 foreclosure inventory rate is the lowest for any month since November 2007.
CoreLogic also reports that the number of mortgages in serious delinquency (defined as 90 days or more past due, including loans in foreclosure or REO) declined by 21.7 percent from November 2014 to November 2015, with 1.3 million mortgages, or 3.3 percent, in this category. The November 2015 serious delinquency rate is the lowest since December 2007.
“After peaking at 3.6 percent in January 2011, the foreclosure rate currently stands at 1.2 percent—a remarkable improvement,” said Dr. Frank Nothaft, chief economist for CoreLogic. “While there are still pockets of areas with high foreclosure activity, 30 states have foreclosure rates below the national average which is evidence of the solid improvement.”
“Tight post-crash underwriting standards coupled with much improved economic and housing market fundamentals have combined to push new mortgage delinquencies to 15-year-lows,” said Anand Nallathambi, president and CEO of CoreLogic. “Although judicial states will likely continue to lag, given current trends, it is reasonable to expect a continued and significant drop in the rate of serious delinquencies and foreclosure starts in 2016.”
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.