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.
Foreclosures by mortgage product type are shown below, with subprime continuing to have the highest rate of delinquency. Delinquency rates are down across all products as more loans entered foreclosure and new delinquencies declined.
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
