Central Florida Real Estate Blog

As reported in the December issue of DSNews (http://www.dsnews.com), market data collected by Lender Processing Services or LPS (http://www.lpsvcs.com) during September reveals that foreclosure timelines continue to increase with borrowers in the latest stages of delinquency or in foreclosure languishing without having made a mortgage payment for up to 16 months.

The company's Mortgage Monitor report released in November illustrates the extreme congestion in the foreclosure pipeline. LPS notes that the average time a loan remains delinquent in five particular judicial stats - New York, Florida, New Jersey, Hawaii, and Maine - now exceeds 500 days.

At the same time, LPS says the foreclosure timeline extension has been significantly more pronounced in nonjudicial states as well.

Timelines in the 90-days-or-greater delinquency category have continued to increase even as inventories have declined. As of the end of September, 32 percent of the 90-day-or-greater delinquencies could be categorized as "extremely delinquent" with borrowers not having made payments for 12 months or more, according to LPS's report.

The average days' delinquent for loans in the 90-days-or-greater delinquency category is 316. The average loan in foreclosure has not had a payment made in 484 days. Based on its analysis of nearly 40 million mortgages across the spectrum of credit products, LPS found that approximately 275,000 loans started foreclosure during September.

The company says while delinquencies in September dropped 7.8 percent as compared with a year ago, in the context of "normal market conditions," delinquencies remain at historic high levels and foreclosure inventories are only slightly below all-time highs.

More than 4.3 million loans are currently 90 or more days delinquent or in foreclosure, according to LPS.

This months report also shows that approximately 1.13 million loans that were current at the beginning of January are at least 60 days delinquent or in foreclosure as of the end of September - a month-over-month increase of approximately 120,000 loans.

LPS says the last two months have seen an increasing trend in this new problem loan category - 1.84 percent of loans that were current six months ago are 60 or more days delinquent today.

The research firm puts the nations mortgage delinquency rate at 9.27 percent and the U.S. foreclosure inventory rate at 3.84 percent, for a total noncurrent loan rate of 13.11 percent.

LPS says the states with the highest percentage of noncurrent loans (defined as the total number of foreclosure and delinquencies as a percent of all active loans in that state) include Florida, Nevada, Mississippi, Georgia, and Louisiana.

The lowest percentage of noncurrent loans can be found in North Dakota, South Dakota, Alaska, Wyoming, and Montana. 
 

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For more information on distressed properties, bank owned foreclosures, and the general state of the Central Florida real estate market, please contact Joe Bornstein, Broker/Owner, Rock Springs Realty, 877-333-2811, joe@rockspringsrealty.net or visit our website at http://www.rockspringsrealty.net