CoreLogic Reports 34,000 Completed Foreclosures in July 2016
September 13, 2016, Irvine, Calif. –
—National Foreclosure Inventory Down 29.1 Percent from July 2015—
CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its July 2016 National Foreclosure Report which shows the foreclosure inventory declined by 29.1 percent and completed foreclosures declined by 16.5 percent compared with July 2015. The number of completed foreclosures nationwide decreased year over year from 41,000 in July 2015 to 34,000 in July 2016, representing a decrease of 71.2 percent from the peak of 118,009 in September 2010.
The foreclosure inventory represents the number of homes at some stage of the foreclosure process and completed foreclosures reflect the total number of homes lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 6.4 million completed foreclosures nationally, and since homeownership rates peaked in the second quarter of 2004, there have been approximately 8.5 million homes lost to foreclosure.
As of July 2016, the national foreclosure inventory included approximately 355,000, or 0.9 percent, of all homes with a mortgage compared with 501,000 homes, or 1.3 percent, in July 2015. The July 2016 foreclosure inventory rate is the lowest for any month since August 2007.
CoreLogic also reports that the number of mortgages in serious delinquency (defined as 90 days or more past due including loans in foreclosure or REO) declined by 17.3 percent from July 2015 to July 2016, with 1.1 million mortgages, or 2.9 percent, in this category. The decline was geographically broad, with declines in 47 states and the District of Columbia.
“Loan modifications, foreclosures, and stronger housing and labor markets have each played a role in bringing the foreclosure rate to the lowest level in nine years,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The U.S. Treasury’s Making Home Affordable program has contributed to the decline through permanent modifications, forbearance and foreclosure alternatives which have assisted 2.5 million homeowners with first mortgages at risk of foreclosure since 2009.”
“Foreclosure rates declined year over year in all states except North Dakota, which experienced a 6 percent increase in its foreclosure inventory related to the drop in energy-related jobs,” said Anand Nallathambi, president and CEO of CoreLogic. “Importantly, judicial states like New Jersey and New York have continued to work through their large inventory of homes in foreclosure proceedings.”
Additional July 2016 highlights:
- On a month-over-month basis, completed foreclosures decreased by 6.8 percent to 34,000 in July 2016 from the 36,000 reported for June 2016.* As a basis of comparison, before the decline in the housing market in 2007, completed foreclosures averaged 21,000 per month nationwide between 2000 and 2006.
- On a month-over-month basis, the foreclosure inventory was down 3.9 percent compared with June 2016.
- The five states with the highest number of completed foreclosures in the 12 months ending in July 2016 were Florida (57,000), Michigan (45,000), Texas (27,000), Ohio (23,000) and California (21,000). These five states account for almost 40 percent of all completed foreclosures nationally.
- Four states and the District of Columbia had the lowest number of completed foreclosures: The District of Columbia (207), North Dakota (324), West Virginia (488), Alaska (635) and Montana (700).
- Four states and the District of Columbia had the highest foreclosure inventory rate: New Jersey (3.3 percent), New York (3 percent), Hawaii (1.8 percent), Maine (1.8 percent) and the District of Columbia (1.8 percent).
- The five states with the lowest foreclosure inventory rate were Colorado (0.3 percent), Minnesota (0.3 percent), Utah (0.3 percent), Arizona (0.3 percent) and Alaska (0.3 percent).
*June 2016 data was revised. Revisions are standard, and to ensure accuracy CoreLogic incorporates newly released data to provide updated results.
For ongoing housing trends and data, visit the CoreLogic Insights Blog: http://www.corelogic.com/blog.
The data in this report represents foreclosure activity reported through July 2016.
This report separates state data into judicial versus non-judicial foreclosure state categories. In judicial foreclosure states, lenders must provide evidence to the courts of delinquency in order to move a borrower into foreclosure. In non-judicial foreclosure states, lenders can issue notices of default directly to the borrower without court intervention. This is an important distinction since judicial states, as a rule, have longer foreclosure timelines, thus affecting foreclosure statistics.
A completed foreclosure occurs when a property is auctioned and results in the purchase of the home at auction by either a third party, such as an investor, or by the lender. If the home is purchased by the lender, it is moved into the lender’s real estate-owned (REO) inventory. In “foreclosure by advertisement” states, a redemption period begins after the auction and runs for a statutory period, e.g., six months. During that period, the borrower may regain the foreclosed home by paying all amounts due as calculated under the statute. For purposes of this Foreclosure Report, because so few homes are actually redeemed following an auction, it is assumed that the foreclosure process ends in “foreclosure by advertisement” states at the completion of the auction.
The foreclosure inventory represents the number and share of mortgaged homes that have been placed into the process of foreclosure by the mortgage servicer. Mortgage servicers start the foreclosure process when the mortgage reaches a specific level of serious delinquency as dictated by the investor for the mortgage loan. Once a foreclosure is “started,” and absent the borrower paying all amounts necessary to halt the foreclosure, the home remains in foreclosure until the completed foreclosure results in the sale to a third party at auction or the home enters the lender’s REO inventory. The data in this report accounts for only first liens against a property and does not include secondary liens. The foreclosure inventory is measured only against homes that have an outstanding mortgage. Generally, homes with no mortgage liens are not subject to foreclosure and are, therefore, excluded from the analysis. Approximately one-third of homes nationally are owned outright and do not have a mortgage. CoreLogic has approximately 85 percent coverage of U.S. foreclosure data.
The data provided is for use only by the primary recipient or the primary recipient's publication or broadcast. This data may not be re-sold, republished or licensed to any other source, including publications and sources owned by the primary recipient's parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data is illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. For questions, analysis or interpretation of the data, contact Lori Guyton at firstname.lastname@example.org or Bill Campbell at email@example.com. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. This data is compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.
CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries.