CoreLogic Reports 45,000 Completed Foreclosures in July
August 27, 2014, Irvine, Calif. –
—Foreclosure inventory down 34.4 percent nationally from a year ago—
CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled services provider, today released its July National Foreclosure Report, which provides data on completed U.S. foreclosures and foreclosure inventory. According to CoreLogic, for the month of July 2014, there were 45,000 completed foreclosures nationally, down from 57,000 in July 2013, a year-over-year decrease of 21.2 percent. On a month-over-month basis, completed foreclosures were down by 8.5 percent from the 49,000* reported in June 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 5.1 million completed foreclosures across the country.
As of July 2014, approximately 640,000 homes in the United States were in some stage of foreclosure, known as the foreclosure inventory, compared to 976,000 in July 2013, a year-over-year decrease of 34.4 percent. The foreclosure inventory as of July 2014 made up 1.6 percent of all homes with a mortgage, compared to 2.4 percent in July 2013. The foreclosure inventory was down 3.3 percent from June 2014, representing 33 months of consecutive year-over-year declines.
“The stock of distressed debt continues to rapidly decline, especially in western states,” said Sam Khater, deputy chief economist at CoreLogic. “The number of seriously delinquent loans fell by more than 25 percent from the prior year in 10 states and seven of those states were in the west.”
“Based on current trends, the overall foreclosure inventory could trend down to as low as 500,000 homes by year-end which is very positive news for the housing market. The picture is considerably brighter in the non-judicial states which maintain consistently lower foreclosure stocks and, in general, lower levels of serious delinquency,” said Anand Nallathambi, president and CEO of CoreLogic. “In total, there are now 36 states with an inventory of foreclosed homes lower than the national rate of 1.7 percent.”
Highlights as of July 2014:
- July represents 18 consecutive months of at least a 20-percent year-over-year decline in the national inventory of foreclosed homes.
- All but two state posted double-digit declines in foreclosures year over year. The District of Columbia saw a 6.3 percent decline and the state of Wyoming saw a 14.6-percent increase in foreclosures year over year.
- Thirty-one states show declines in year-over-year foreclosure inventory of greater than 30 percent, with Arizona and Utah experiencing declines at 49 percent each.
- The five states with the highest number of completed foreclosures for the 12 months ending in July 2014 were: Florida (120,000), Michigan (44,000), Texas (38,000), California (32,000) and Georgia (31,000).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 July 2014 were: South Dakota (73), the District of Columbia (110), North Dakota (307), West Virginia (498) and Wyoming (677).
- The five states with the highest foreclosure inventory as a percentage of all mortgaged homes were: New Jersey (5.7 percent), Florida (4.8 percent), New York (4.3 percent), Hawaii (3.0 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 (0.4 percent), Arizona (0.5 percent), Minnesota (0.5 percent) and North Dakota (0.5 percent).
*June 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 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 July 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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