Even though fewer borrowers are delinquent on their home mortgages compared to a year ago, late payments rose in June, compared to May, by 3.4%, according to Lender Processing Services’ latest “First Look” report.
LPS found that overall, 7.14% of mortgages were in arrears as of June. The vendor estimates that its figures encompass 70% of the overall market.
In total, 3.6 million properties are 30 or more days past due, but not in foreclosure. Just under 1.6 million mortgages are considered seriously delinquent.
But there is good news: the foreclosure presale inventory rate continues to drop, both on an annual and monthly basis. The rate now stands at 4.09% with roughly two million loans in this category. This is a month-over-month decline of 2%, and represents a 1% drop from June 2011.
Similar to May, the states that have the highest percentage of mortgages in arrears include Florida, Mississippi, Nevada, New Jersey and Illinois.
Conversely, Montana, Alaska, Wyoming, South Dakota and North Dakota have the lowest amount of delinquent loans.