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LATEST CORELOGIC ECON TWEETS

Number of Loans in Foreclosure Lowest Since November 2007

Foreclosure Inventory at 67 Percent Below Peak

Molly Boesel    |    Mortgage Performance

CoreLogic reported today that the national foreclosure inventory fell by 24.9 percent year over year in April 2015 to approximately 521,000 homes, or 1.4 percent of all homes with a mortgage. This marks 42 months of consecutive year-over-year declines, as shown in Figure 1. Also in April 2015, the 12-month sum of completed foreclosures continued to decline, dropping by 19.8 percent to 538,000 since April 2014. The seriously delinquent inventory fell to 1.4 million loans, a 22.1-percent year-over-year decline.

The five states with the largest year-over-year drop in the foreclosure inventory were: Florida (-45.6 percent), Connecticut (-35.8 percent), Illinois (-33.1 percent), Idaho (-32.8 percent) and Oregon (-32.3 percent). There were 47 states that posted year-over-year declines in the foreclosure inventory, and 19 of those states had decreases of more than 20 percent. Only Wyoming (+46.6 percent), the District of Columbia (+32.9 percent), Massachusetts (+22.0 percent) and West Virginia (+3.7 percent) experienced year-over-year increases in the foreclosure inventory.

Judicial Foreclosure States Continue to Have Higher Forclosure Rates

Judicial Foreclosure States Continue to Have Higher Forclosure Rates

Judicial foreclosure states1, on average, continued to have higher foreclosure rates than non-judicial states, averaging 2.3 percent and 0.7 percent, respectively, in April 2015 (Figure 2). The foreclosure rate for judicial states peaked in February 2012 at 5.4 percent, while non-judicial states experienced peak foreclosure rates in January 2011. As of April 2015, 42 percent of outstanding mortgages were in judicial states, but 70 percent of total loans in foreclosure were in those states.

[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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