Average time to foreclose sets new record of 631 days
Mortgage delinquencies continued their decline in October and are nearly 30% off their January 2010 peak, but foreclosure inventories and the foreclosure process reached all-time highs during the month, according to Lender Processing Services ($32.28 0.09%).
Foreclosure inventories reached 4.29% of all active mortgages, an all-time high, while the average days delinquent for loans in foreclosure extended as well, setting a new record of 631 days since last payment. The average days delinquent for loans 90 or more days past due but not yet in foreclosure decreased for the second consecutive month. (Click on chart to expand.)
Judicial vs. nonjudicial foreclosure processes remain a significant factor in the reduction of foreclosure pipelines from state to state, with nonjudicial foreclosure inventory percentages less than half that of judicial states, LPS said in its monthly "Mortgage Monitor" report. "This is largely a result of the fact that foreclosure sale rates in nonjudicial states have been proceeding at four to five times that of judicial," LPS said. (Click on chart to expand.)
Nonjudicial foreclosure states made up the entirety of the top 10 states with the largest year-over-year decline in noncurrent loans percentages.
The October data also showed that mortgage originations are on the rise, reaching levels not seen since mid-2010.
Mortgage prepayment rates also spiked, as much of the new origination is related to refinancing.
While Federal Housing Administration origination activity is down, government-sponsored enterprise and FHA originations still account for the vast majority of all new loans — nearly nine out of every 10 new mortgages.
The total loan delinquency rate in October stood at 7.93%, down 2% over September. Florida, Mississippi, Nevada, New Jersey and Illinois have the most noncurrent loans.
Write to Kerry Curry.
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