Lender Processing Services (LPS) data reveal that both the foreclosure rate and mortgage delinquencies continued to decline through August.From a database of nearly 40 million loans nationwide that represents approximately 70% of the overall market, LPS said in its “first look” report that August’s foreclosure rate was 4.04%. This figure represents a 1% decline from the previous month and 2% less than a year ago. Additionally, it is the lowest foreclosure rate since October 2010.
According to the Jacksonville, Fla.-based analytic firm, there are over 3.4 million properties 30 or more days past due but not in foreclosure. Meanwhile, approximately 1.5 million loans are at least 90 days delinquent but not in foreclosure.
Secondly, residential delinquencies are also subsiding, the report said. At the end of August, the delinquency rate dropped to 6.87%, a decrease of 2.3% from July and a substantial drop of 10.6% from the same time period last year.
The states with the lowest percentage of noncurrent loans were Montana, Alaska, South Dakota, Wyoming and Nevada. Conversely, the states that had the most borrowers who did not pay their mortgage loans were Florida, Mississippi, New Jersey, Nevada and New York.