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November Foreclosure Inventory Falls 22 Percent Year Over Year

The Seriously Delinquent Rate Fell in All States

Molly Boesel    |    Mortgage Performance

  • The foreclosure inventory fell 21.8 percent year over year in November 2015.
  • The seriously delinquent inventory fell 21.7 percent year over year in November 2015.
  • The foreclosure rate in judicial states is two and a half times the pre-crisis rate.

The national foreclosure inventory – the number of loans in the foreclosure process – fell 21.8 percent year over year in November 2015 to approximately 448,000 homes, or 1.2 percent of all homes with a mortgage, according to the latest CoreLogic Foreclosure Report. The foreclosure inventory has fallen on a year-over-year basis every month since November 2011 (Figure 1) and in November 2015 was 71.3 percent below the January 2011 peak.

The November 2015 foreclosure rate – the share of all loans in the foreclosure process – fell to 1.2 percent, down from 1.5 percent in November 2014 and the lowest in eight years. But that was still above the pre-housing-crisis foreclosure rate of 0.6 percent.

Figure 2 shows that, collectively, judicial foreclosure states1 continued to have a much higher average foreclosure rate (2 percent) in November 2015 than non-judicial states (0.6 percent). The collective foreclosure rate in non-judicial states is close to the pre-crisis rate of 0.4 percent, while the foreclosure rate in judicial states is two and a half times the pre-crisis rate of 0.8 percent. As of November 2015, judicial states had 42 percent of the nation’s outstanding mortgages but 70 percent of all loans in foreclosure.

Forty-seven states posted year-over-year declines in their foreclosure inventory in November 2015, and 17 of those had decreases of more than 20 percent. The five states with the largest year-over-year drop in the foreclosure inventory were Florida (-40.7 percent), Minnesota (-31.1 percent), Colorado (-29.2 percent), Maryland (-27.1 percent) and Nevada (-26.9 percent). Only Massachusetts (+17.7 percent), Rhode Island (+2.7 percent), Delaware (+2.2 percent) and the District of Columbia (+0.5 percent) experienced year-over-year increases in the foreclosure inventory.

The seriously delinquent rate – the share of loans 90 or more days overdue – was 3.3 percent in November 2015, down from 4.1 percent in November 2014. The November 2015 inventory of seriously delinquent mortgages fell 21.7 percent year over year. The seriously delinquent rate fell year over year in all states in November 2015.

[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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