Foreclosure Inventory Continues to Decline in April

Foreclosure Inventory Continues to Decline in April

CoreLogic released its National Foreclosure Report, looking at data as of the end of April 2014. The company reported that completed foreclosures in April totaled 46,000, down 0.4 percent from March and down 18 percent year-over-year.

Before the decline in the housing market, completed foreclosures per month totaled 21,000 between 2000 and 2006.

CoreLogic found that foreclosure inventory fell in April as well, down 4.7 percent month-over-month and down 35 percent year-over-year. As of April 2014, foreclosure inventory stood at 694,000, down considerably from 1.1 million in April 2013.

The rate of mortgages that were seriously delinquent was 4.5 percent, the first time delinquency rates have been this low since September 2008, according to CoreLogic. The foreclosure rate also experienced a similar trajectory—the rate of foreclosures is back to November 2008 levels.

“Over the past 12 months, completed foreclosures fell to 599,000, the lowest level since the Great Recession began in 2007. At the current pace of completed foreclosures, and given the current foreclosure inventory, it will take 14 months to move all of the foreclosed inventory through the pipeline,” said Sam Khater, deputy chief economist for CoreLogic.

The inventory of foreclosed properties has experienced 19 months of year-over-year, double-digit declines, and 30 straight months of overall decline.

The 12-month sum of completed foreclosures is at its lowest point since December 2007. Completed foreclosures have declined every month for 28 months.

“We have now registered two and a half years of continuous decreases in the number of homeowners who are in some stage of the foreclosure process. This consistent decline means fewer Americans are experiencing the distress of delinquency and default,” said Anand Nallathambi, president and CEO of CoreLogic.

He continued, “The recovery may be slow, but it is steady.”

According to CoreLogic, 34 states show declines of more than 30 percent in year-over-year foreclosure inventory. Arizona, California, Minnesota, and Utah are experiencing more than 50 percent year-over-year declines. Additionally, 35 states have an inventory of foreclosed homes lower than the national average.

The five states with the highest foreclosure inventory as a percentage of mortgaged homes include: New Jersey (6.0 percent), Florida (5.4 percent), New York (4.6 percent), Hawaii (3.1 percent), and Maine (3.0 percent).

States with the lowest foreclosure inventory as a percentage of mortgaged homes include: Alaska (0.4 percent), Wyoming (0.4 percent), North Dakota (0.5 percent), Nebraska (0.5 percent), and Minnesota (0.5 percent).

The states with the highest number of completed foreclosures during the past 12 months were Florida (121,000), Michigan (46,000), Texas (38,000), California (33,000), and Georgia (32,000).

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