In an indication of continuing troubles for the housing market, numbers just released from Lender Processing Services (LPS), show the total number of foreclosures and delinquencies increasing. Today’s release of its May Mortgage Monitor report shows a 2.3 percent month-over-month increase in the nation's mortgage delinquency rate with a year-over-year increase of 7.9 percent.
The report also shows mortgage defaults beyond 90 days as well as foreclosures experiencing a slight increase, with both rates elevated to historically high levels. As of May 31 there were more than 7.3 million loans delinquent or in foreclosure. Additionally, the numbers showed that the cure rate for loans in default has declined while the rate of deterioration has increased, with 2.5 loans getting worse for each one that improves.
Finally, the report shows a potential increase in shadow inventory as lenders are now taking an average of 449 days to move a loan from 30 days delinquent through foreclosure. For the full report click HERE.
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Wait! I thought all this was stimulated away and the foreclosure problem was solved! Don't tell me it's not...
Jay - I know it's hard to believe, with all the signs of recovery.
Every market is different. Many markets are thriving, especially lower priced rural ones where you don't need a mortgage or one very small one. Where home prices have way way less zero places in them.
I was so hoping to hear better news, bummer
Hi John - Some sad news for sure. I think we are on our way to a double dip, and it's not getting better anytime soon. We need more jobs, plain and simple. Thanks for the facts.
John - Fantastic report, although very sad for the State of Florida - #1 sad, sad and I think it will continue for a long time. Had to re-blog for Florida
In this part of Calif. we are seeing that the 449 day is changing, rapidly. Banks and loan servicers are now posting Notices of Default and Notice of Trustee Sales much quicker. I think they are tring to get rid of the bad loans on properties where gov. programs, loan mods, etc are not going to work.
Marcy
"I am not afraid of storms: For I am learning how to sail my ship." Author: Eleanor Roosevelt
I'm sorry Steve, but this is the summer of recovery. You should have known that...
I can hear somebody saying, "lookee there, now's the best time to buy ever.!"
Andrew - No question that the market varies widely, it's just the overall averages that are concerning.
Barbara - It will get better, we're just trying to determine if it will be in our lifetimes : )
Lisa - Jobs are key, and seem to be getting little attention.
Petra - And here in GA we're in the top 10, not an enviable position.
Marcy - I know some lenders have sped up the process. Unfortunately, that means more foreclosure inventory.
Pam - It's not the storms that concern me; it's that no one seems to be at the helm.
Matt - And, strangely, it might be for a few. But I'd do my homework first--and hire a good agent.
I still see the whole housing mess as a big correction. I'm not convinced there's anything that will bail it out.
Jon - Nothing yet has been tried that comes close to a solution. I agree that we're still far from a housing recovery.
Hi, John. How can the number of delinquencies and foreclosures NOT increase? It's part of the "big picture."
Speaking of pictures, that's a GREAT GRAPHIC!!
Leslie - And it's a "big picture" that's a big problem. Thanks for the support.
John,
It's not over until the fat lady sings. The shadow inventory is a scary concept and will likely cause further distress.
Esko - And the "shadow" will continue to grow unless we can begin creating jobs.
Who is this Lender Processing Services? IL is in there but is it all of IL or just the larger more populated counties of Cook & DuPage? Also showed that FHA & VA even though notably less money down are not the highest defaults which has been proven out before.
Hi Lyn - As far as I know they're one of if not the largest mortgage processing operation in the country. I've used them as a source of data because they are so large, but I don't really dug into their numbers that much.