According to a report released by LPS Applied Analytics, loan performance was up and foreclosure starts down compared to the previous month. Despite this, foreclosure rates are near historic high rates but delinquency rates are at the lowest point since August 2008.
Foreclosure starts are down over 15%, with foreclosure inventory at 4%. That may seem low, but compare it to December 2005, when the rate was only .5%. “The national pipeline ratios – 90-plus delinquencies and foreclosures divided by the 6-month average of foreclosure sales – continued to decline.” These rations are higher in the Northeast, specifically New York and New Jersey. Foreclosure sales dropped in both judicial and non-judicial states. The average foreclosure pipeline in judicial states is 84 months, while New York is 846 months and New Jersey 772 months. “Cure rates for all types of loans, including one-month delinquencies to foreclosure initiated loans, were higher. Additionally, repeat foreclosures decreased 8%on a month-over-month basis.”
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