Foreclosure inventory increases are being driven both by elevated levels of foreclosure starts as well as few foreclosure sales.
The average number of days delinquent for loans in foreclosure is a record 499 days with over 4.3 million loans 90 days or more delinquent or in foreclosure.
Two key numbers to watch in 2011 are:
• New delinquencies: with falling house prices, delinquencies could start to increase again.
• Foreclosures: with the end of the foreclosure moratoriums, foreclosure sales should increase – and the number of homes in the foreclosure process should decline. However, REOs (Real Estate Owned) will increase unless the homes are sold in foreclosure.
Information provided by LP Analytics