According to National Mortgage News, Lender Processing Services has just released a preliminary report indicating foreclosure inventory is the lowest it has been since the end of 2008. Foreclosure inventory has consistently decreased for the past 18 months. LPS calculates that the fall in foreclosure inventory amounts to an annual decrease of nearly 30%.
LPS’s database of loans accounts for around 70% of the total mortgage market. According the analysis based on LPS data, delinquent loans have decreased by approximately 11% since last year, and now make up less than 6.3% of the mortgages. Gauged from data up to the end of last month, only 2.5% of active mortgages comprised the foreclosure inventory nationwide.
According to similar analysis of foreclosure inventory conducted by CoreLogic, the five states with the largest year over year decrease in foreclosure inventory since the end of October were:
All 50 states indicated a decrease in their foreclosure inventory in relation to last year. 34 out of the 50 states evidenced a decrease of greater than 25%.
This decrease in foreclosure inventory nationwide is a signal that the housing market has been and continues to recover. Since the subprime mortgage crisis, lending practices have been significantly altered to protect borrowers from entering into irresponsible mortgages and insure foreclosure inventory continues to decrease. For those who are seeking home ownership again after a foreclosure, there are lenders that specialize in helping subprime borrowers after a credit event. If you have had a foreclosure in the past, there are options for purchasing that don’t have to risk a foreclosure in your future.
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