Completed Foreclosures Down More Than 25 Percent in One Month

Completedrnforeclosures dropped dramatically in October CoreLogic said today, falling torn48,000 for the month compared to 64,000 in September and 68,000 in Octoberrn2013.  These were decreases of 25.6rnpercent and 30 percent respectively. </p

A completed foreclosures representsrnthe actual repossession of a home.  Sincernthe financial crisis began in September 2008, there have been approximately 4.6rnmillion completed foreclosures across the country.  To provide perspective, CoreLogic compares therncurrent numbers to the average number of completed foreclosures, 21,000 that occurredrneach month between 2000 and 2006, prior to the financial crisis. </p

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The foreclosure inventory, that isrnthe number of properties currently in process of foreclosure, numberedrnapproximately 879,000 homes in October. rnThis is a 31 percent decrease from the 1.3 million homes in the inventoryrnin October 2012.  The foreclosurerninventory as of October 2013 represented 2.2 percent of all homes with arnmortgage compared to 3.1 percent in October 2012. The foreclosure inventory slippedrn2.9 percent from September 2013 to October 2013. </p

Twenty-three states matched orrnclosely matched the national year-over-year decrease in the foreclosurerninventory.  The states with the largestrnforeclosure inventories as a percentage of mortgaged properties were Floridarn(7.1 percent), New Jersey (6.7 percent), New York (4.9 percent), Maine (3.8rnpercent) and Connecticut (3.7 percent). rnAll five states are judicial foreclosure states where the involvement ofrnthe court has led to large foreclosure backlogs and protracted foreclosure timelines.</p

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“Year over year, thernforeclosure inventory, as a percentage of all homes with a mortgage, hasrndeclined almost a full percentage point to 2.2 percent,” said Mark Fleming,rnchief economist for CoreLogic. “This is good news for the housing andrnmortgage finance markets, but the rate remains elevated relative to thernpre-crisis level of about 0.6 percent. There are almost 900,000 propertiesrnstill in foreclosure, but a normal level would be only a quarter of the currentrnstock.”</p

“The scourge of an elevatedrnforeclosure inventory is easing. In October, every state posted arnyear-over-year decline in completed foreclosures, which is positive news,”rnsaid Anand Nallathambi, president and CEO of CoreLogic. “Additionally, thernrate of serious delinquencies, which fell more than 25 percent year over year,rnis at the lowest level in nearly five years, which is great news as we headrninto a new year.”

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