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National Foreclosure Inventory Down 27 Percent Year Over Year in February

Florida Experiences Largest Year-Over-Year State Improvement

Molly Boesel    |    Mortgage Performance

Today CoreLogic reported that the national foreclosure inventory fell by 27.3 percent year over year in February 2015 to approximately 553,000 homes, or 1.4 percent of all homes with a mortgage, down from 761,000, or 1.9 percent, in February 2014. This marks 40 months of continuous year-over-year declines in the foreclosure inventory, including 25 straight months of declines greater than 20 percent, as shown in Figure 1. Also in February 2015, the 12-month sum of completed foreclosures continued to decline, dropping by 16.1 percent from February 2014 to 550,000. The seriously delinquent inventory fell to 1.5 million loans, a 19.3-percent year-over-year decline.

The five states with the largest year-over-year drop in the foreclosure inventory were: Florida (-46.4 percent), Maine (-42.2 percent), Idaho (-38.2 percent), Connecticut (-35.5 percent) and Illinois (-34.7 percent). Forty-eight states posted year-over-year declines in the foreclosure inventory, with 44 of those states showing decreases of more than 20 percent. Massachusetts (+6.6 percent), Wyoming (+14.8 percent) and the District of Columbia (+32.6 percent) experienced year-over-year increases in the foreclosure inventory.

Judicial Foreclosure States Continue to have Higher Foreclosure Rates

Judicial Foreclosure States Continue to have Higher Foreclosure Rates

Judicial foreclosure states1 , on average, continued to have higher foreclosure rates than non-judicial states, averaging 2.4 percent and 0.7 percent, respectively, in February 2015 (Figure 2). The foreclosure rate for judicial states peaked in February 2012 at 5.3 percent and had fallen by more than half that as of January 2015. Non-judicial states experienced peak foreclosure rates four years earlier in January 2011 and were about one-fourth of that peak value in February 2015.

[1] 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 foreclosure states have longer foreclosure timelines, thus affecting foreclosure statistics.

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