CoreLogic Reports 45,000 Completed Foreclosures in August
October 02, 2014, Irvine, Calif. –
—Foreclosure inventory down 32.8 percent nationally from a year ago—
CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled services provider, today released its August National Foreclosure Report, which provides data on completed U.S. foreclosures and foreclosure inventory. According to CoreLogic, for the month of August 2014, there were 45,000 completed foreclosures nationally, down from 58,000 in August 2013, a year-over-year decrease of 22.2 percent. On a month-over-month basis, completed foreclosures were up slightly by 1.1 percent from the 44,000* reported in July 2014. 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.
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 5.2 million completed foreclosures across the country.
As of August 2014, approximately 629,000 homes nationally were in some stage of foreclosure, known as the foreclosure inventory, compared to 936,000 in August 2013, a year-over-year decrease of 32.8 percent. The foreclosure inventory as of August 2014 made up 1.6 percent of all homes with a mortgage, compared to 2.4 percent in August 2013. The foreclosure inventory was down 2.6 percent from July 2014, representing 34 months of consecutive year-over-year declines.
“Clearly there has been a large improvement in the market the last few years, but five years into the economic expansion the foreclosure inventory remains at nearly three times the normal level,” said Sam Khater, deputy chief economist at CoreLogic. “Since homeownership rates peaked in the second quarter of 2004, there have been 7 million completed foreclosures, which account for 15 percent of all mortgages.”
“The number of foreclosures completed during the last 12 months is at the lowest level since November of 2007,” said Anand Nallathambi, president and CEO of CoreLogic. “At current foreclosure rates, the shadow inventory could fall below 500,000 units by year-end which could provide a solid boost to the recovery in housing in 2015.”
Highlights as of August 2014:
- August represents 19 consecutive months of at least a 20-percent year-over-year decline in the national inventory of foreclosed homes.
- All but two states posted double-digit declines in foreclosures year over year. The District of Columbia saw a 2.5-percent decline and the state of Wyoming saw a 13.4-percent increase in foreclosures year over year.
- Twenty-eight states show declines in year-over-year foreclosure inventory of greater than 30 percent, with Utah and Idaho experiencing the largest declines at 46 percent each.
- The five states with the highest number of completed foreclosures for the 12 months ending in August 2014 were: Florida (121,000), Michigan (43,000), Texas (36,000), California (32,000) and Georgia (28,000).These five states account for almost half of all completed foreclosures nationally.
- The four states and the District of Columbia with the lowest number of completed foreclosures for the 12 months ending in August 2014 were: South Dakota (65), the District of Columbia (110), North Dakota (296), West Virginia (462) and Wyoming (650).
- The five states with the highest foreclosure inventory as a percentage of all mortgaged homes were: New Jersey (5.8 percent), Florida (4.6 percent), New York (4.2 percent), Hawaii (3 percent) and Maine (2.7 percent).
- The five states with the lowest foreclosure inventory as a percentage of all mortgaged homes were: Nebraska (0.4 percent), Alaska (0.5 percent), Arizona (0.5 percent), North Dakota (0.5 percent) and Wyoming (0.5 percent).
*July 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 August 2014
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 August 2014.
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. Homes with no mortgage liens can never be in 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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