US Foreclosure Inventory at 8-Year Low

Paul Ausick

foreclosure notice
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The total U.S. inventory of foreclosed properties is down more than 24% year over year in July to just 1.4% of mortgaged properties. A total of 75,400 properties were involved in a new foreclosure start during July, down 4.6% compared with June and down nearly 17% year over year.

The total number of loans that are 30 days or more past due but not in foreclosure is 2.389 million, or 4.1% of loans outstanding. Of that number, 886,000 are at least 90 days past due but not yet in foreclosure. The total number of properties that are in foreclosure is 711,000, down 28,000 compared with June and down 224,000 compared with July 2014. The total number of properties that are 30 days or more past due or in foreclosure is now 3.1 million, down 83,000 compared with June and down 685,000 compared with July 2015.

The data were published Friday by Black Knight Financial Services in its monthly “First Look” report. Final totals for July will be available in the company’s “Mortgage Monitor” report for July, which is expected to be published by September 8. Non-current totals combine foreclosures and delinquencies as a percentage of active loans. Black Knight derives its statistics from its own loan-level database, representing about two-thirds of the overall market.

The five states with the highest percentage of non-current mortgage debt are Mississippi (12.75%), New Jersey (10.16%), Louisiana (9.90%), Maine (8.95%) and New York (8.92%).

The five states with the lowest percentage of non-current debt are North Dakota (2.12%), Colorado (2.96%), Minnesota (3.22%), Montana (3.29%) and South Dakota (3.35%).

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The five states making the largest six-month improvements in non-current percentages are Florida (down 21.62% to 7.69% non-current debt), New Hampshire (down 19.24% to 5.32%), Illinois (down 17.32% to 6.22%), Vermont (down 16.81% to 5.86%) and California (down 16.38% to 3.52%).

The five states that posted the largest deterioration in non-current debt percentages are Mississippi (down 10.17% to 12.75%), Oklahoma (down 9.87% to 7.2%), Alaska (down 8.48% to 3.40%), South Dakota (down 7.45% to 3.35%) and Wyoming (down 5.27% to 4.02%).