Black Knight: Foreclosure inventory drops to lowest since July 2008

Nationally foreclosures drop below 1 million, but tick up in April, May

Foreclosure inventory rate fell below 2% for first time since summer of 2008, according to Black Knight Financial Services “first look” at May 2014 month-end mortgage performance statistics derived from its loan-level database representing approximately two-thirds of the overall market.

According to Black Knight, the share of loans in foreclosure down over 37% year-over-year.

Overall the number of foreclosures has shrunk by over half a million loans since this time last year.

Click below to see the chart.

However, despite the decline, it is notable that foreclosure starts rose nearly 10% from April.

Click below to see the chart.

Overall, delinquency rate remains essentially unchanged on month-over-month basis, at 5.62%.

Click below to see the chart.

Mississippi continues to lead the nation in both seriously delinquent (90 or more days past due, but not in foreclosure) loans as well as total non-current (30 days or more or in foreclosure) inventory 

Click below to see the chart.

To read the full Black Knight report, click here.

According to RealtyTrac, foreclosures of all types were filed on 109,824 residential properties in May, a 5% decrease from the previous month and a 26% decrease from May 2013, which brought it to the lowest monthly level since the early days of the housing bubble and crash in December 2006.

The quick read – Northeastern and West Coast markets are having the most trouble with rising foreclosure activity, along with Chicago. The healthiest markets are in the flyover states, the sand states and the Sunbelt. Florida is still healing but still hurting.

Despite the decrease in overall foreclosure activity nationwide, 21 states posted monthly increases in overall foreclosure activity, and 11 states posted annual increases in foreclosure activity.

The four major metros with the biggest increases are all northeastern and seaboard cities – Boston, New York City, Washington D.C, and Philadelphia. Boston increased 44%, New York 23%, and Washington D.C. and Philadelphia both 15% year-over-year.

“It’s not surprising that some of the states with the longest foreclosure timelines are those with markets still dealing with increasing foreclosure activity even as the country as a whole continues to hit new lows,” said Daren Blomquist, vice president at RealtyTrac. 

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