Once you’ve seen a movie, listened to a record or viewed a commercial 32 times, you pretty much have it memorized. The same goes for the monthly National Foreclosure Report from CoreLogic that reports a decline in the foreclosure inventory on a year-over-year basis for the past 32 consecutive months. In June 2014, the foreclosure inventory was down 3.9 percent sequentially from May. This is good news.
In June 2014, the 49,000 foreclosures completed were down 9.9 percent from a year ago, although they were up 2.7 percent sequentially from May 2014. In comparison, from 2000 to 2006, prior to the housing bubble bursting, there were 21,000 foreclosures on average per month. Thus, there is still some room to shrink further from the current level.
The national foreclosure inventory, made up of all homes in some stage of foreclosure, had approximately 648,000 properties in June 2014, off 35 percent from the estimated one million properties a year ago. An estimated 1.7 percent of all homes with a mortgage were in some stage of foreclosure in May 2014, down from 2.5 percent in June 2013.
Seriously delinquent homes (those with loans 90 days or more past due) declined 24.5 percent from June 2013 to June 2014. An estimated 4.3 percent of all homes with mortgages today are included in this classification.
The table below lists the five states with the greatest foreclosure inventory as a percentage of mortgaged homes and the five states with the lowest inventory. What is not a surprise is that all of the top five states require judicial foreclosure (where foreclosures are processed through the court system) versus non-judicial foreclosure states (no required court intervention in the foreclosure process). Judicial foreclosure simply takes longer, on average.
To obtain a copy of the CoreLogic National Foreclosure Report which includes state-specific data click http://www.corelogic.com/about-us/researchtrends/national-foreclosure-report.aspx?WT.mc_id=crlg_140731_JhTJu&elq=13111816e23c4e869e7e28f73e4aac91&elqCampaignId=343
Things just continue to get better – except for those businesses involved in distressed real estate. That lake is quickly evaporating into big puddles.