Lender Processing Services' (LPS) July Mortgage Monitor report showed that foreclosure timelines are still on their steady upward trend with payments not having been made on the average loan in foreclosure in a record 599 days.

LPS said that close to 1.9 million loans are 90 or more days delinquent but not yet in foreclosure, 42% have not made a payment in over a year with an average delinquency of 397 days, which is also a new record.

Also, it said that June first-time foreclosure starts were near three-year lows, and first-time delinquencies made up only 25% of new delinquent inventory.

As of the end of June, LPS said that 4.1 million loans were either 90 or more days delinquent or in foreclosure, as delinquencies are still two times and foreclosures eight times they were at pre-crisis levels.

Foreclosure sales are still constricted, with foreclosure starts outnumbering sales by a factor of almost three to one, LPS stated.

According to LPS, the slowdown is most seen in judicial foreclosure states, which maintain a foreclosure and seriously delinquent pipeline that is over three times as long versus non-judicial states.

At the current rate of foreclosure sales, judicial foreclosure states would require on average 111 months to work through loan inventories that are 90 or more days delinquent or in foreclosure versus non-judicial states, which would be able to clear the inventories in roughly 32 months. 

Other key results from LPS include: 8.34% (total U.S. loan delinquency rate); 2.4% (month-over-month change in delinquency rate); 4.11% (total U.S foreclosure pre-sale inventory rate);   -0.4% (month-over-month change in foreclosure pre-sale inventory rate); FL, MS, NV, NJ, IL (states with highest percentage of non-current loans);  MT, WY, AK, SD, ND (states with the lowest percentage of non-current loans).

LPS said that the non-current totals combine foreclosures and delinquencies as a percent of a state's active loans.

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