More than one-third of property owners with seriously delinquent mortgages haven't made a monthly payment in more than a year, according to the Lender Processing Services (LPS)
mortgage monitor report for October.
The company said another 263,000 loans entered the foreclosure process last month, which is down 4.4% from September. LPS said the total inventory of foreclosures includes 2.1 million loans with another 2.2 million loans more than 90-days delinquent but not yet in the process.
LPS said foreclosure sales "decreased dramatically" the past month because of the nationwide moratoriums
big banks put in place beginning in late September. Loans moving to REO status or other involuntary liquidation status fell 35% last month.
"The moratoria contributed to further timeline extensions, as the average number of days past delinquent for loans in the foreclosure process approaches 500," LPS said. (Click on chart below to expand.)
While the number of first-time troubled loans has remained stable the past few months, the level of 60-day delinquencies that became current after a previous delinquency and fell back to past due is rising, according to the LPS mortgage monitor.
Earlier in November, LPS reported the delinquency rate for October was 9.29%
for loans 30 days or more past due.
The mortgage analytics firm maintains a database of more than 40 million loans.
Write to Jason Philyaw