More Delinquent Home Loans Entering Foreclosure Pipeline

Mortgage performance statistics showed an acceleration of U.S. home loan delinquencies entering the foreclosure process in August 2010, according to Jacksonville-based Lender Processing Services' latest First Look Mortgage Report, derived from a database of nearly 40 million mortgage loans.

September 21, 2010

Mortgage performance statistics showed an acceleration of U.S. home loan delinquencies entering the foreclosure process in August 2010, according to Jacksonville-based Lender Processing Services' latest First Look Mortgage Report, derived from a database of nearly 40 million mortgage loans. 

"The fact that we're seeing foreclosure inventories rising is more a factor of process than increasing deterioration," explains Herb Blecher, Senior Vice President of LPS Applied Analytics, "Loans that have been delinquent for a historically long period of time are just now beginning to move through the pipeline. As of July 2010, the average length of time a loan in foreclosure had been delinquent was nearly 470 days." This report correlates with RealtyTrac's latest U.S. foreclosure report for August which also showed a record number of homes entering the foreclosure process.

Some of the report highights include:

  • Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 9.22%
  • Year-over-year change in delinquency rate:  -5.1%
  • Number of properties that are 30 or more days past due, but not in foreclosure: (A) 4,947,000
  • Number of properties that are 90 or more days delinquent, but not in foreclosure: 2,374,000
  • Number of properties in foreclosure pre-sale inventory: (B) 2,038,000
  • Number of properties that are 30 or more days delinquent or in foreclosure:  (A+B) 6,985,000
  • States with highest percentage of non-current loans: FL, NV, MS, GA, IL
  • States with the lowest percentage of non-current loans: MT, WY, AK, SD, ND

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