Foreclosure inventory and completed foreclosures decreased significantly in July from last year, according to the July 2016 National Foreclosure Report released by CoreLogic, a global property information, analytics and data-enabled solutions provider.
Foreclosure inventory decreased 29.1% annually in July from, and completed foreclosures decreased 16.5% from 41,000 last year to 34,000. This decrease represents a drop of 71.2% from the peak of 118,009 in September 2010.
Foreclosure inventory includes the number of homes at some stage of the foreclosure process whereas completed foreclosures includes the total number of homes lost to foreclosure.
In July, the national foreclosure inventory included about 355,000 or 0.9% of total homes with a mortgage. This is compared to 501,000 homes, or 1.3%, last year. The foreclosure inventory rate was the lowest in July for any month since August 2007.
“Loan modifications, foreclosures and stronger housing and labor markets have each played a role in bringing the foreclosure rate to the lowest level in nine years,” CoreLogic Chief Economist Frank Nothaft said.
“The U.S. Treasury’s Making Home Affordable program has contributed to the decline through permanent modifications, forbearance and foreclosure alternatives which have assisted 2.5 million homeowners with first mortgages at risk of foreclosure since 2009,” Nothaft said.
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Last month, CoreLogic’s June 2016 National Foreclosure Report showed the inventorydeclined 25.9% from last year, and completed foreclosures declined 4.9%.
The number of mortgage in serious delinquency, mortgages 90 days or more past due including loans in foreclosure or real estate owned, declined 17.3% from last year to 1.1 million, or 2.9% of total loans. A decline was seen in 47 states and the District of Columbia.
A recent report from MGIC Investment Corporation, a provider of primary insurance covering approximately one million mortgages, showed a decrease of over 20% in residential mortgage delinquent inventory.
“Foreclosure rates declined year over year in all states except North Dakota, which experienced a 6% increase in its foreclosure inventory related to the drop in energy-related jobs,” CoreLogic President and CEO Anand Nallathambi said.
“Importantly, judicial states like New Jersey and New York have continued to work through their large inventory of homes in foreclosure proceedings,” Nallathambi said.
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A new study from Fannie Mae shows that the jobs market correlates closely to the number of homes in foreclosures.