At 1 percent, the rate of all mortgages that are in active foreclosure fell to its lowest point in nine years, according to Black Knight’s First Look at September 2016 Mortgage Data.
Month-over-month, the number of active foreclosures dropped 3.38 percent but it was year-over-year where the truly substantial decrease was seen, 31.23 percent. Total foreclosure starts fell to 61,700 this month, a decrease of 10.32 percent from the previous month and 22.78 from the year prior. Likewise, foreclosure sales decreased 5.82 percent from August to 2.03 percent. This was an increase though from last year by 2.47 percent.
September’s less-than-one-percent seasonal increase in the delinquency rate was relatively mild by historical standards, but was still a decline from last year’s level by 12.24 percent.
The number of properties that are 30 or more days past due but not in foreclosure rose by 14,000 from August to a total of 2,165,000. Despite the slight incline, this was a strong decline of 292,000 properties from the year prior. The number of properties that are 90 or more days past due but not in foreclosure dropped down both month-over-month and year-over-year to hit 668,000 properties.
The top five states with the highest percentage of combined foreclosures and delinquencies included Mississippi with 11.16 percent, Louisiana with 10.32 percent, New Jersey with 8.13 percent, Alabama with 7.85 percent, and West Virginia with 7.72 percent.
In contrast, the five states with the lowest percentage of foreclosures and delinquencies included South Dakota with 2.95 percent, Montana with 2.88 percent, Minnesota with 2.75 percent, Colorado with 2.44 percent, and North Dakota with 2.23 percent.