April Foreclosures Down From This Time Last Year

Foreclosures are declining across the country, decreasing a whopping 23.4% annually in April, while completed foreclosures decreased by 15.8% annually.

The completed foreclosures averaged 37,000 nationally, which is down from 43,000 in April of 2015. From its peak of 117,813 in September 2010, this is down 68.9%.

The foreclosure inventory is the number of homes at some point in the foreclosure process, doesn’t matter where. The completed foreclosures are homes that have been foreclosed upon.

The peak was in 2010 and the number of homeowners with negative equity has decreased by two thirds, and the number of borrowers in foreclosure proceedings has also dropped at the same time.

Roughly four million homeowners were underwater in the first quarter, and they were more susceptible to foreclosure proceedings if they default.

Because home prices continued to rise, it allowed for 268,000 homeowners to regain the equity in the first quarter of 2016m which pushed the total number of mortgaged residential properties with equity to 92%.

The good news about last month is the number of homes in some stage of foreclosure and the numbers of delinquent mortgages were at levels that haven’t been seen since late 2007, just before the big collapse.

April continued the trend and hit another low not seen since 2007, when foreclosures had an average of 21,000.The total homes in the national foreclosure inventory for April was 406,000 homes, about 1.1% of which had a mortgage. Compared to 2015, it’s down from 530,000 homes, which had 1.4% with a mortgage.

The loans that have serious delinquency, meaning they are 90 days or more past due, in foreclosure, or real estate owned, declined by 21.6%, with 3%, and 1.1 million mortgages in this category.

Two major factors have helped the drop in delinquency rates, and we have the rising home prices and improvement in the labor market to thank. The home price index has risen 6.2%, and the labor market gained 2.6 million jobs.

The recovery is slow, but at least it’s not regressing. 

Post a Comment