The delinquency rate on mortgages 30 days or more past due fell by more last month than it has in nearly a year, according to Lender Processor Services’ Mortgage Monitor report to be released later this week.
Delinquencies fell 1.2 percent from January and 18.4 percent from a year ago to top 8.8 percent of all mortgages.
However, foreclosure inventories remain higher than they were in February 2010. Presale inventory stands at 7.4 percent above the level of a year ago. Some 2,196,000 properties are in the foreclosure inventory and a total of 6,856,000 are 30 days delinquent or in foreclosure. Total U.S. foreclosure pre-sale inventory rate is 4.15 percent.
In January, LPS said foreclosure inventory remains under pressure due to a low volume of foreclosure sale activity, as foreclosure starts are outnumbering sales by 3:1. Foreclosure timelines continue to extend – the average loan in foreclosure has not made a payment in over 500 days.
States with the highest percentage of non-current loans are Florida, Nevada, Mississippi, New Jersey and Georgia. States with the lowest percentage of non-current loans are Montana, Wyoming, Alaska and North Dakota.