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LATEST CORELOGIC ECON TWEETS

Number of Loans in Foreclosure Lowest Since December 2007

Judicial States Account for Nearly Three-Quarters of Loans in Foreclosure

Molly Boesel    |    Mortgage Performance

CoreLogic reported today that the national foreclosure inventory fell by 25.7 percent year over year in March 2015 to approximately 542,000 homes, or 1.4 percent of all homes with a mortgage. This marks 41 months of consecutive year-over-year declines, as shown in Figure 1. Also in March 2015, the 12-month sum of completed foreclosures continued to decline, dropping by 15.5 percent to 544,000 since March 2014. The seriously delinquent inventory fell to 1.5 million loans, a 19.1-percent year-over-year decline.

The five states with the largest year-over-year drop in the foreclosure inventory were: Florida (-45.8 percent), Maine (-37.7 percent), Connecticut (-36 percent), Idaho (-35.5 percent) and Illinois (-33.6 percent). Forty-eight states posted year-over-year declines in the foreclosure inventory, with 23 of those states showing decreases of more than 20 percent. Only Wyoming (+34 percent), the District of Columbia (+27.1 percent), Massachusetts (+15.3 percent) and New Hampshire (+0.4 percent) experienced year-over-year increases in the foreclosure inventory.

Judicial foreclosure states1, on average, continue to have higher foreclosure rates than non-judicial states, averaging 2.3 percent and 0.7 percent, respectively, in March 2015 (Figure 2). The foreclosure rate for judicial states peaked in February 2012 at 5.3 percent, while non-judicial states experienced peak foreclosure rates in January 2011. While 44 percent of outstanding mortgages were in judicial states, 72 percent of total loans in foreclosure as of March 2015 were in judicial states.

Judicial Foreclosure States Continue to Have Higher Foreclosure Rates

Judicial Foreclosure States Continue to Have Higher Foreclosure Rates

[1] In judicial foreclosure states, lenders must provide evidence of delinquency to the courts 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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