The rate of non-current loans, a combination of foreclosures and delinquencies as a percent of active loans, reached 12.49%, a record high in the US, according to a report from Lender Processing Services (LPS). LPS manages loan-level residential mortgage data and performance information from more than 40m loans. LPS’ Mortgage Monitor report also showed the nation’s September foreclosure rate jumping to 3.12%, a 2.6% increase from the previous month and an 88.9% hike from last year. Florida led the way with 10.4% of loans in foreclosure, and more than 22% of loans reported as non-current. The total US delinquency rate stands at 9.37%, according to the report, and the number of loans sinking further into delinquent status more than doubled the amount of foreclosure starts. Nearly 33% of foreclosures remain in pre-sale status after 12 months, double the amount from last year. The six-month deterioration ratio rose in the past two months to 300%, meaning that for every loan that improves in status, three more deteriorate further, according to the report. This large “shadow” inventory of foreclosures and real estate-owned (REO) inventory indicates another onslaught of troubled loans in an already backed-up pipeline, according to the report. Florida, Nevada and Mississippi lead all states with the most non-current loans. North Dakota, South Dakota and Wyoming have the fewest non-current loans. Write to Jon Prior.

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