Foreclosure inventory continues to decrease, decreasing 3.55% from April to May and 29% year-over year, according to a recent report from Black Knight Financial Services, a provider of integrated technology, data and analytics solutions that facilitate and automate many of the business processes across the mortgage lifecycle.
Foreclosure inventory in May hit below 575,000, down from 800,000 last year. That marks the lowest foreclosure inventory since the summer of 2007.
Foreclosure starts, on the other hand, increased almost 6% from April. That being said, however, April’s foreclosure starts hit a 10-year low. May’s 62,100 foreclosure starts were still 20% less than May 2015.
In fact, May’s foreclosure starts level remains below pre-crisis levels, according to the report.
Delinquencies increased slightly in May by just 0.36%, however they are still down by almost 13% annually.
It’s normal seasonal behavior for delinquencies to hit their calendar year low in March and then gradually climb throughout the summer and fall months.
April’s increase of 3.77% in delinquencies and this month’s 0.36% increase are following the seasonal pattern in a very measured way.
As the numbers continue to decrease, some organizations continue to reach out to families threatened by foreclosures.
Recently, NeighborWorks America, a nonpartisan, nonprofit organization that provides access to homeownership and to safe and affordable rental housing, announced the National Foreclosure Mitigation Counseling awarded almost $40 million to 21 state housing finance agencies, 19 HUD-approved housing counseling intermediaries and 60 community-based NeighborWorks organizations to provide counseling to families and individuals who are working with their servicers to avoid foreclosures.