A new report from Jacksonville, Fla.-based Lender Processing Services (LPS) says that since June 2012, the foreclosure pipeline in Massachusetts has increased to 171 months from 75 months.

The January Mortgage Monitor report released by LPS found significant differences continue in foreclosure pipelines between states with judicial and non-judicial foreclosure processes.

On average, pipeline ratios – the rate at which states are currently working through their existing backlog of loans either in foreclosure or serious delinquency – are almost twice as high in judicial states than non-judicial states, according to LPS.

However, according to LPS Applied Analytics Senior Vice President Herb Blecher, even this now-familiar judicial/non-judicial dichotomy is not as clearly defined as it once was.

Certain non-judicial states, such as Massachusetts and Nevada, have enacted "judicial-like legislative and/or legal actions which have greatly extended their pipeline ratios," Blecher said in a statement.

 Nevada’s "time to clear" has extended from 27 months in January 2012 to 57 months as of January 2013. The change in Massachusetts has been even more pronounced. Since June of last year, its pipeline ratio has gone to 171 months from 75 months.

The January data also showed that, despite an overall national trend of improvement, new problem loan rates remain high in states with large numbers of "underwater" borrowers. So-called "sand states," such as Nevada, Florida and Arizona, are still seeing high levels of negative equity (45, 36 and 24 percent of borrowers are underwater, respectively), and each of those states is experiencing higher-than-average levels of new problem loans.

LPS: Mass. Foreclosure Pipeline Swells

by Banker & Tradesman time to read: 1 min
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