The number of completed foreclosures nationwide decreased year over year from 41,000, or 7.3 percent in May 2015 to 38,000 in May 2016, according to the May 2016 National Foreclosure Report released today by CoreLogic.

That represents a 67.9 percent decrease in foreclosures since the peak of the foreclosure crisis in September 2010. On a month-over-month basis, completed foreclosures increased by 5.5 percent to 38,000 in May 2016 from the 36,000 in April 2016.

Foreclosure inventory declined by 24.5 percent and completed foreclosures declined by 6.9 percent in May 2016 compared with May 2015. Since the financial crisis began in September 2008, there have been approximately 6.3 million completed foreclosures nationally, and since homeownership rates peaked in the second quarter of 2004, there have been approximately 8.3 million homes lost to foreclosure.

As of May 2016, the national foreclosure inventory included approximately 390,000, or 1 percent, of all homes with a mortgage compared with 517,000 homes, or 1.3 percent, in May 2015. The May 2016 foreclosure inventory rate is the lowest for any month since October 2007.

CoreLogic also reports that 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 percent from May 2015 to May 2016, with 1.1 million mortgages, or 2.8 percent, in this category. The May 2016 serious delinquency rate is the lowest in more than eight years, since October 2007.

“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,” Anand Nallathambi, president and CEO of CoreLogic, said in a statement. “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.”

CoreLogic Reports Nationwide Foreclosures Completed Down 7.3 Percent to 38,000 In May 2016

by Banker & Tradesman time to read: 1 min
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