Good News but Old Story, Foreclosures Down Again

While it is certainly good news we wishrnwe could find a new and more interesting way to say it.  Nonetheless, foreclosure activity hasrndeclined again, this time as reflected in June “first look” data from BlackrnKnight Financial Services.</p

The U.S. delinquency rate in June wasrn4.82 percent, a 2.90 percent drop from May and 15.3 percent from a yearrnearlier.  The number of properties that werern30 or more days past due, but not in foreclosure at the end of June was 2,444,000,rn69,000 fewer than in May and down 439,000 from June 2014.  Seriously delinquent mortgages – those 90 orrnmore days past due but not in foreclosure, declined by 27,000 from the previousrnmonth to 895,000.  In June 2014 thernnumber was approximately 1.16 million. </p

Mortgages in the process ofrnforeclosure, the pre-sale inventory, numbered 739,000 at the end of thernreporting period, down 15,000 month-over-month and 212,000 year-over year.  These in-foreclosure properties representedrn1.46 percent of all mortgaged properties in the U.S., a rate that declined 2.11rnpercent from May and 22.55 percent from the previous year.</p

Seventy-nine thousand propertiesrnentered the foreclosure process during the month, down 3.54 percent from foreclosurernstarts in May and 10.53 percent from June 2014. rnForeclosure sales (completed foreclosures) were at a rate of 1.91rnpercent, down 4.89 percent from May but an increase of 10.76 percent from thernprevious June.</p

Total distressed properties includingrnthose 30 or more days delinquent or in process of foreclosure declined byrn85,000 from May and 651,000 from a year earlier but still totaled 3,183,000 atrnthe end of June.  Foreclosures as arnpercentage of all mortgages were highest in Mississippi at 12.74 percent, NewrnJersey (10.56 percent), Louisiana, Maine, and New York, all in the 9-10 percentrnrange.</p

Black Knight put the monthly pre-paymentrnrate at 1.40 percent, up 3.58 percent from May and a 46.55 percent increasernfrom the previous June.  Pre-paymentrnrates are often tied to increasing rates of refinancing.</p

The company will provide a morernin-depth review of this data in its monthly Mortgage Monitor report, which willrnbe available by Aug. 3, 2015.

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