The number of completed foreclosures across the nation is down year over year by 6.9% from 41,000 in May 2015, to 38,000 in May 2016, according to the latest report by CoreLogic. This represented a 67.9% decrease from the height of the foreclosure crisis of 117,813 in September 2010.
A total of about 6.3 million homes have been foreclosed upon since September 2008 and approximately 8.3 million homes since 2004 when homeownership peaked.
The total active number of active foreclosures has gone down by 24.5%. There are approximately 390,000 homes in foreclosure which represents 1% of all homes with a mortgage compared with 517,000 homes, or 1.3%, in May 2015. This was the lowest for any month since October 2007.
The number of mortgages in serious delinquency (defined as 90 days or more past due including loans in foreclosure or REO) declined by 21.6% for the same time period. There were a total of 1.1 million mortgages, or 2.8% delinquencies which is the lowest since October 2007, according to CoreLogic.
Dr. Frank Nothaft, chief economist for CoreLogic had said, “The foreclosure rate fell to 1 percent in May, which is twice the long-term average of 0.5 percent. However, this masks the underlying progress at the state level. Twenty-nine states had foreclosure rates below the national average, and all but North Dakota experienced declines in their foreclosure rate compared to the prior year.”
The president and CEO of CoreLogic, Anand Nallathambi stated, “Delinquency and foreclosure rates continue to drop as we experience the benefits of a combination of tight underwriting, job and income growth and a steady rise in home prices. We expect these factors to remain in place for the remainder of this year and for delinquency and foreclosure rates to decline even further.”
Nallathambi further added, “As we finally move past the housing crisis, we need to increase our focus on expanding the supply of affordable housing and access to credit for first-time homebuyers in sustainable ways to ensure the long-term health of the U.S. housing market.”
Here are some additional highlights from the May 2016 report:
- On a month-over-month basis, completed foreclosures increased by 5.5 percent to 38,000 in May 2016, from the 36,000 reported for April 2016.* As a basis of comparison, before the decline in the housing market in 2007, completed foreclosures averaged 21,000 per month nationwide between 2000 and 2006.
- On a month-over-month basis, the foreclosure inventory was down 3.0 percent compared with April 2016.
- The five states with the highest number of completed foreclosures were Florida (63,000), Michigan (45,000), Texas (27,000), Ohio (23,000), and California (23,000).These five states account for almost half of all completed foreclosures nationally.
- Four states and the District of Columbia had the lowest number of completed foreclosures: the District of Columbia (139), North Dakota (323), West Virginia (494), Alaska (648), and Montana (690).
- Four states and the District of Columbia had the highest foreclosure inventory rate: New Jersey (3.6 percent), New York (3.2 percent), Hawaii (2.1 percent), the District of Columbia (2.0 percent), and Maine (1.9 percent).
- The five states with the lowest foreclosure inventory rate were Alaska (0.3 percent), Arizona (0.3 percent), Colorado (0.3 percent), Minnesota (0.3 percent), and Utah (0.3 percent).