CoreLogic Reports 38,000 Completed Foreclosures in July 2015
September 08, 2015, Irvine, Calif. –
—National Foreclosure Inventory Down Nearly 28 Percent from July 2014—
CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled services provider, today released its July 2015 National Foreclosure Report which shows that the foreclosure inventory declined by 27.9 percent and completed foreclosures declined by 24.4 percent since July 2014. The number of foreclosures nationwide decreased year over year from 50,000 in July 2014 to 38,000 in July 2015, representing a decrease of 67.9 percent from the peak of 117,225 completed foreclosures in September 2010.
Completed foreclosures are an indication of the total number of homes lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 5.8 million completed foreclosures across the country, and since homeownership rates peaked in the second quarter of 2004, there have been approximately 7.8 million homes lost to foreclosure.
As of July 2015, the national foreclosure inventory included approximately 469,000, or 1.2 percent, of all homes with a mortgage compared with 650,000 homes, or 1.7 percent, in July 2014. The July 2015 foreclosure rate is the lowest since December 2007.
CoreLogic also reports that the number of mortgages in serious delinquency (defined as 90 days or more past due, including those loans in foreclosure or REO) declined by 23 percent from July 2014 to July 2015 with 1.3 million mortgages, or 3.4 percent, falling into this category. This is the lowest serious delinquency rate since December 2007.
“Job market gains and home-price appreciation help to push serious delinquency and foreclosure rates lower. The CoreLogic national HPI™ showed home prices in July rose 6.9 percent from a year earlier, building equity for homeowners,” said Frank Nothaft, chief economist for CoreLogic. “Further, 2.4 million jobs were created, pushing the unemployment rate down from 6.2 percent in July 2014 to 5.3 percent this July and supporting family income growth for most owners.”
“As we enter the final months of 2015, the housing market continues to gather steam buoyed by improving economic conditions and the release of pent up demand for homeownership,” said Anand Nallathambi, president and CEO of CoreLogic. “The recovery in the housing market is also reflected in declining delinquency and foreclosure rates which, to some degree, reflects the progressive clearing of crisis-era loans and the benefits of tighter underwriting standards over the past six years.”
Additional highlights as of July 2015:
- On a month-over-month basis, completed foreclosures declined by 6.2 percent from the 40,000 reported in June 2015.* 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.
- The five states with the highest number of completed foreclosures for the 12 months ending in July 2015 were Florida (98,000), Michigan (47,000), Texas (33,000), California (27,000) and Georgia (27,000). These five states accounted for almost half of all completed foreclosures nationally.
- Four states and the District of Columbia had the lowest number of completed foreclosures for the 12 months ending in July 2015: South Dakota (33), the District of Columbia (124), North Dakota (316), Wyoming (483) and West Virginia (553).
- Four states and the District of Columbia had the highest foreclosure inventory as a percentage of all mortgaged homes: New Jersey (4.8 percent), New York (3.7 percent), Florida (2.7 percent), Hawaii (2.5 percent) and the District of Columbia (2.4 percent).
- The five states with the lowest foreclosure inventory rate: Alaska (0.3 percent), Minnesota (0.4 percent), North Dakota (0.4 percent), Utah (0.4 percent) and Nebraska (0.4 percent).
*June 2015 data was revised. Revisions are standard, and to ensure accuracy CoreLogic incorporates newly released data to provide updated results.
To download a copy of the National Foreclosure Report, please visit:
CoreLogic Foreclosure Report July 2015
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 2015.
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.
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CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled services 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.