Report shows declining foreclosure rate; lenders showing delay in foreclosing

A report issued by Lender Processing Services, one of the countries largest loan servicers and aggregators of loan performance data, shows that while mortgage delinquencies continue to decline, lenders are taking longer to foreclose resulting in a drop in foreclosure sales. In fact, there are still significantly fewer foreclosure sales than there were before foreclosure moratoriums were put into place, and foreclosure sales are declining.

May 2011 Report highlights:

  • Delinquency rate was 7.96 percent, down slightly 7.97 percent the month before and down 18.3 percent from a year ago
  • Foreclosure rate was 4.11 percent, down slightly from 4.14 percent from month before and up 3.0 percent from a year ago.
  • There were 197,007 foreclosure starts, a 5.11 percent increase from the month before and a decrease of 16.9 percent from the year before.
  • Serious mortgage delinquency (90+ days) rate was 7.76 percent, down slightly from 7.86 percent from the month before and down 10.0 percent from a year ago.
  • The average delinquency for borrowers over 90 days late was 385 days for May, 2011 – In January of 2011 it was 344 days, January 2010 – 257 days, January 2009 – 196 days and in January 2008 – 192 days.
  • The average delinquency for borrowers in foreclosure in May, 2011 was 580 days, well over double what is was in January 2008 (251 days). This number has steadily increased since January 2008 showing that lenders are allowing more time, and more delinquency, before foreclosing. In January 2009 the average delinquency was 319 days and in January 2010 – 410 days and at the beginning of this year it was 523 days.

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