Though down compared to a year ago, national foreclosure starts were up almost 20 percent in August compared to July, with first-time foreclosure starts reaching 2011 highs, according to Florida-based mortgage industry vendor Lender Processing Services (LPS).

Compared to August 2010, national foreclosure starts were down approximately 12 percent, the company said. Of the approximately 4 million loans either 90 or more days delinquent or in foreclosure, the number in the 90 or more days category has shrunk to levels not seen since 2008. The August data also showed that, of loans that were current six months prior, 1.4 percent have since become seriously delinquent – a rate of less than half of the peak of 2.9 percent in 2009.

"First-time" delinquencies, defined as new problem loans that had never been delinquent before, accounted for approximately a quarter of total new delinquencies – a sign the company said shows an improving trend for new problem loans.

August results also showed an all-time high in the number of loans shifting from foreclosure back into delinquent status, suggesting that process reviews and potential loss mitigation activity are continuing, according to LPS. As a result, foreclosure timelines continue to increase, with the average loan in foreclosure having been delinquent for a record 611 days.

Average delinquencies in non-judicial states, like Massachusetts, continue to be about six months shorter at time of foreclosure sale compared to judicial states, like Connecticut.

Still, of the nearly 46 million loans that were current as of the end of August, 23 percent were still at risk as a result of negative equity – a leading indicator of a borrower’s propensity to default.

The firm reported a total U.S. loan delinquency rate of 8.13 percent.