The LPS Mortgage Monitor August 2011 Mortgage Performance Report Shows First-Time Foreclosure Starts Near Three-Year Lows. That's the good news.



The Bad News





Average Loan in Foreclosure Is Delinquent for Record 599 Days

Of the nearly 1.9 million loans that are 90 or more days delinquent but not yet in foreclosure, 42 percent have not made a payment in more than a year with an average delinquency of 397 days, also a new record.

As of the end of June, 4.1 million loans were either 90 or more days delinquent or in foreclosure, as delinquencies remain two times and foreclosures eight times pre-crisis levels.

On average, at the current rate of foreclosure sales, judicial foreclosure states would require 111 months to work through inventories of loans that are 90 or more days delinquent or in foreclosure as compared to non-judicial states, which would be able to clear the inventories in approximately 32 months.

Most of the foreclosure “outflow” is back into delinquency

Loans deteriorating over 90 days still outnumber foreclosure starts 2:1

Foreclosure starts outnumber sales by a factor of almost 3:1

LPS Mortgage Monitor Report

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First time foreclosure starts near three year lows

42% of Loans 90 Day Delinquent+, Not Made a Payment in 12 Months or More

Most of the foreclosure “outflow” is back into delinquency

Loans deteriorating over 90 days still outnumber foreclosure starts 2:1

Foreclosure starts outnumber sales by a factor of almost 3:1

The pipeline ratio in judicial states is more than 3 times that of non-judicial