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National Foreclosure Inventory Falls Year Over Year in January

Serious Delinquency Rates Rise In Some Oil Markets

Molly Boesel    |    Mortgage Performance

  • The foreclosure inventory fell nearly 22 percent year over year in January 2016.
  • The seriously delinquent inventory fell almost 23 percent year over year in January 2016.
  • Serious delinquency rates increased in two Texas metro areas – Midland and Odessa – from the prior year and foreclosure rates increased year over year in Odessa.

The national foreclosure inventory – the number of loans in the foreclosure process – fell 21.7 percent year over year in January 2016, 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 January 2016 it was 70.8 percent below the January 2011 peak.

The foreclosure rate – the share of all loans in the foreclosure process – fell to 1.2 percent in January 2016, down from 1.5 percent in January 2015. The foreclosure rate has been holding steady at about 1.2 percent for the last four months. It is still above the pre-housing-crisis average foreclosure rate of 0.6 percent between 2000 and 2006.

Judicial Foreclosure

Judicial Foreclosure

Figure 2 shows that, collectively, judicial foreclosure states[1] continued to have a much higher average foreclosure rate (2 percent) in January 2016 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 almost two and a half times the pre-crisis rate of 0.8 percent.  As of January 2016, judicial states had 42 percent of the nation’s outstanding mortgages but 70 percent of all loans in foreclosure.

Forty-eight states and the District of Columbia posted year-over-year declines in their foreclosure inventory in January 2016, and 18 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 (-36.6 percent), Nevada (-30.5 percent), Michigan (-29.8 percent), Minnesota (-29.7 percent), and Colorado (-28.8 percent). Only Rhode Island (+7.7 percent) and Delaware (+5.9 percent) experienced year-over-year increases in the foreclosure inventory.

Serious Delinquent

Serious Delinquent

The seriously delinquent rate – the share of loans 90 or more days overdue – was 3.2 percent in January 2016, down from 4.1 percent in January 2015. The January 2016 inventory of seriously delinquent mortgages fell 22.5 percent year over year. The seriously delinquent rate fell year over year in all states in January 2016.

Figure 3 shows the serious delinquency rates and foreclosure rates in select oil-patch areas for January 2016 compared with January 2015. Serious delinquency rates and foreclosure rates fell in Texas, Oklahoma, North Dakota, and Houston-The Woodlands-Sugar Land, Texas. The serious delinquency rate in Midland, Texas rose from 1.1 percent in January 2015 to 1.4 percent in January 2016, and the serious delinquency rate in Odessa, Texas increased from 2.1 percent in January 2015 to 2.7 percent in January 2016. Of these markets, only Odessa, Texas saw an increase in its foreclosure rate, which rose from 0.4 percent in January 2015 to 0.6 percent in January 2016.



1In 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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