Foreclosure Starts Rise to Highest Level of Year
Foreclosure starts moved up 20 percent in August over July, posting their highest monthly levels of the year. But there are signs of improvement: Foreclosure starts were down more than 12 percent compared to August of last year, according to Lender Processing Services in its latest report.
What’s more, “first-time” delinquencies -- loans that have never been delinquent before -- made up only a quarter of all new delinquencies, which LPS says is a sign of an “improving trend for new problem loans.”
Overall, about 4 million loans are 90 days or more delinquent or in foreclosure, shrinking to 2008 levels.
There’s still a long way to go, however. Of the nearly 46 million loans that were current by the end of August, 23 percent were still at high risk of defaulting, LPS notes.
“August results showed an all-time high in the number of loans shifting from foreclosure back into delinquent status, suggesting that process reviews and potential loss mitigation activity are continuing,” LPS noted in a public statement. “As a result, foreclosure timelines continue to increase, with the average loan in foreclosure having been delinquent for a record 611 days.”
According to LPS, the states with the highest percentage of loans in delinquency or foreclosure are:
What’s more, “first-time” delinquencies -- loans that have never been delinquent before -- made up only a quarter of all new delinquencies, which LPS says is a sign of an “improving trend for new problem loans.”
Overall, about 4 million loans are 90 days or more delinquent or in foreclosure, shrinking to 2008 levels.
There’s still a long way to go, however. Of the nearly 46 million loans that were current by the end of August, 23 percent were still at high risk of defaulting, LPS notes.
“August results showed an all-time high in the number of loans shifting from foreclosure back into delinquent status, suggesting that process reviews and potential loss mitigation activity are continuing,” LPS noted in a public statement. “As a result, foreclosure timelines continue to increase, with the average loan in foreclosure having been delinquent for a record 611 days.”
According to LPS, the states with the highest percentage of loans in delinquency or foreclosure are:
- Florida
- Mississippi
- Nevada
- New Jersey
- Illinois
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