Black Knight: Foreclosure inventory lowest since February 2008

Delinquencies decline by 117K but foreclosure starts rise 12%

At 1.76% of active mortgages, the nation’s inventory of loans in foreclosure is now at its lowest point since February 2008, according to the September report from the Data and Analytics division of Black Knight Financial Services.

That equates to 893,000 loans in the foreclosure process, a decline of 435,000 from last year.

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Mortgage delinquencies reversed last month’s increase, dropping 3.9% – or 117,000 loans – nearly erasing August’s increase.
Total non-current inventory (30 or more days past due or in foreclosure) declined by 117,000 (almost 400K since last year).
Foreclosure starts rose nearly 12% in September, with 91,000 new (or repeat) foreclosure actions.
The inventory of seriously delinquent loans (those 90 or more days past due) declined by 25,000, reaching its lowest point August 2008.
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September’s monthly prepayment rate (historically a good indicator of refi activity) declined by almost a full percentage point.
Looking at the states with the highest and lowest share of non-current inventory, Minnesota entered the top 5 best performing states, knocking out Alaska. 
Additionally, Florida, which showed the best rate of improvement over the past 6 months, is now at the bottom of the 5 states with the highest share of non-current loans.

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