One-third of Shadow Inventory Cleared in Last Year

The pre-foreclosure or “shadow inventory,” that isrnhomes that are in the process of foreclosure, has fallen by over a third sincernAugust of 2012 to its lowest point in 4-1/2 years.  Lender Processing Services (LPS) said todayrnthat the inventory, which was once viewed as a major hurdle to recovery of thernhousing market, now contains 1.34 million housing units compared to 2.02rnmillion in August 2012.  The currentrnnumber represents 2.66 percent of mortgaged homes in the country compared torn4.04 percent a year ago or a -34.08 percent change.  The inventory has, in fact fallen 5.74rnpercent in a month–coincidentally similar to the 6% month-over-month increase in cash sales reported this morning.</p

LPS, in its “first look” at data from its August Mortgage Monitor said that the current raternof mortgages that are delinquent 30 days or more but not yet in foreclosurernstood at 6.20 percent in August, a -3.31 percent change since July and arndecline of 9.71 percent since August 2012. rnThis is a total of 3.12 million properties that are behind at least onernmortgage payment.  Of these 1.29 millionrnproperties are seriously delinquent (90 days or more) but not in foreclosure.  Thus the number of properties in some degreernof distress in August totaled 4.47 million.</p

The states with highest percentage of non-currentrnloans are Florida, Mississippi, New Jersey, New York, and Maine. </p

LPS said it will release the full August Mortgage Monitor by October 7.

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