CoreLogic Reports 40,000 Completed Foreclosures in April 2015
June 09, 2015, Irvine, Calif., –
— National Foreclosure Inventory Down Nearly 25 Percent Year Over Year —
CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled services provider, today released its April 2015 National Foreclosure Report which shows that the foreclosure inventory declined by 24.9 percent and completed foreclosures declined by 19.8 percent from April 2014. There were 40,000 completed foreclosures nationwide in April 2015, down from 50,000 in April 2014, representing a decrease of 65.8 percent from the peak of completed foreclosures in September 2010, according to CoreLogic data.
Completed foreclosures are an indication of the total number of homes actually lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 5.7 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 April 2015, the national foreclosure inventory included approximately 521,000 homes, or 1.4 percent, of all homes with a mortgage compared with 694,000 homes, or 1.8 percent, in April 2014.
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 22.1 percent from April 2014 to April 2015, with 1.4 million mortgages, or 3.6 percent, falling into this category. This is the lowest serious delinquency rate since February 2008. On a month-over-month basis, the number of seriously delinquent mortgages declined by 3 percent.
“By mid-2011, after the Great Recession and at the trough of the house-price collapse, more than 1.5 million homes were in the foreclosure pipeline,” said Frank Nothaft, chief economist for CoreLogic. “Employment recovery, foreclosure alternatives, and home-value gains have worked to reduce this inventory. At CoreLogic, we found that April’s foreclosure inventory was down 25 percent from a year ago, falling to one-third the mid-2011 level.”
“Despite a slow and steady improvement in most housing market fundamentals, too many families remain in default of their mortgage obligations,” said Anand Nallathambi, president and CEO of CoreLogic. “The percent of homeowners with a mortgage that have missed three-or-more monthly payments or are in foreclosure proceedings dropped to 3.6 percent in our April data; while well below the record peak of nearly 9 percent and the lowest in more than seven years, it remains about double the pre-2007 rate.”
Additional highlights as of April 2015:
- On a month-over-month basis, completed foreclosures decreased by 1.1 percent from the 40,000* reported in March 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 April 2015 were: Florida (106,000), Michigan (49,000), Texas (33,000), Ohio (28,000) 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 April 2015: South Dakota (20), the District of Columbia (95), North Dakota (318), West Virginia (475) and Wyoming (498).
- On a month-over-month basis, the foreclosure inventory was down by 2.2 percent from March 2015. The April 2015 foreclosure rate of 1.4 percent is back to early 2008 levels.
- Four states and the District of Columbia had the highest foreclosure inventory as a percentage of all mortgaged homes: New Jersey (5.1 percent), New York (3.8 percent), Florida (3.1 percent), Hawaii (2.6 percent) and the District of Columbia (2.5 percent).
- The five states with the lowest foreclosure inventory as a percentage of all mortgaged homes were: Alaska (0.3 percent), Nebraska (0.4 percent), North Dakota (0.4 percent), Colorado (0.4 percent) and Minnesota (0.5 percent).
* March 2015 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.
To download a copy of the National Foreclosure Report, please visit:
CoreLogic Foreclosure Report April 2015
The data in this report represents foreclosure activity reported through March 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.
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 services provider. The company’s combined data from public, contributory and proprietary sources includes over 3.5 billion records spanning more than 40 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.