Foreclosure inventory, serious delinquency hit lowest rates in years

by Ryan Smith11 May 2016
Foreclosure inventory dropped more than 23% year over year in March, hitting its lowest rate in years according to new data from CoreLogic.

The analytics firm released its National Foreclosure Report for March on Tuesday. According to the report, not only did foreclosure inventory tumble by 23.2%, but completed foreclosures fell by 14.9% year over year. The number of completed foreclosures in March was 36,000 – down from 42,000 in March of 2015 and a 69.7% decrease from the peak of 117,782 in September of 2010.

The foreclosure inventory includes any homes at some stage of the foreclosure process, and completed foreclosures represent the total number of homes lost to foreclosure. Since the beginning of the financial crisis in 2008, there have been about 6.2 million completed foreclosures nationally, CoreLogic reported.

In March, the national foreclosure inventory included about 427,000 homes, or 1.1% of all homes with a mortgage, according to CoreLogic. That’s down from 556,000 homes – or 1.4% – in March of 2015. The March 2016 foreclosure inventory rate is the lowest for any month since October of 2007, according to CoreLogic.

The number of mortgages in serious delinquency (90 or more days past due) also dropped in March, falling 19.1% from the year before and hitting its lowest level since November of 2007.

“Delinquencies and foreclosure rates are now at pre-crash levels as the benefits of higher home prices, improving economic fundamentals and years of cautious underwriting are being felt across the country,” said Anand Nallathambi, president and CEO of CoreLogic. “Longer term, as loans made since 2009 account for a larger share of outstanding debt, we anticipate that the serious delinquency rate will have further substantive declines.”
 

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