IRVINE, Calif.—Foreclosure inventory declined in June by 28.9% and completed foreclosures declined by 14.8% since June 2014, according to a new report.
The CoreLogic National Foreclosure report shows the number of foreclosures nationwide decreased year over year from 50,000 in June 2014 to 43,000 in June 2015, representing a decrease of 63.3% from the peak of 117,119 completed foreclosures in September 2010.
Completed foreclosures are an indication of the total number of homes actually lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 5.8 million completed foreclosures across the country, and since homeownership rates peaked in the second quarter of 2004, there have been approximately 7.8 million homes lost to foreclosure, CoreLogic stated.
As of June 2015, the national foreclosure inventory included approximately 472,000, or 1.2%, of all homes with a mortgage compared with 664,000 homes, or 1.7%, in June 2014. The June 2015 foreclosure rate is the lowest since December 2007.
CoreLogic also reported that the number of mortgages in serious delinquency (defined as 90 days or more past due, including those loans in foreclosure or REO) declined by 23.3% from June 2014 to June 2015, with 1.3 million mortgages, or 3.5%, falling into this category. This is the lowest serious delinquency rate since January 2008. On a month-over-month basis, the number of seriously delinquent mortgages declined by 3.4%.
“The foreclosure rate for the U.S. has dropped to its lowest level since 2007, supported by a continuing decline in loans made before 2009, gains in employment, and higher housing prices,” said Frank Nothaft, chief economist for CoreLogic. “The decline has not been uniform geographically, as the foreclosure rate varies across metropolitan areas. In the Denver and San Francisco areas, the foreclosure rate has fallen to 0.3%, whereas in the Tampa market the rate is 3.5% and in Nassau and Suffolk counties it is an elevated 4.8%.”
“Serious delinquency is at the lowest level in seven-and-a-half years reflecting the benefits of slow but steady improvements in the economy and rising home prices,” said Anand Nallathambi, president and CEO of CoreLogic. “We are also seeing the positive impact of more stringent underwriting criteria for loans originated since 2009 which has helped to lower the national seriously delinquent rate.”
Additional highlights as of June 2015:
On a month-over-month basis, completed foreclosures increased by 4.8% from the 41,000 reported in May 2015. As a basis of comparison, before the decline in the housing market in 2007, completed foreclosures averaged 21,000 per month nationwide between 2000 and 2006.
The five states with the highest number of completed foreclosures for the 12 months ending in June 2015 were: Florida (102,000), Michigan (46,000), Texas (33,000), California (29,000) and Ohio (27,000). These five states accounted for almost half of all completed foreclosures nationally.
Four states and the District of Columbia had the lowest number of completed foreclosures for the 12 months ending in June 2015: South Dakota (32), the District of Columbia (107), North Dakota (313), Wyoming (499) and West Virginia (566).
Four states and the District of Columbia had the highest foreclosure inventory as a percentage of all mortgaged homes: New Jersey (4.7%), New York (3.7%), Florida (2.7%), Hawaii (2.5%) and the District of Columbia (2.4%).
The five states with the lowest foreclosure inventory as a percentage of all mortgaged homes were: Alaska (0.3%), Minnesota (0.4%), Montana (0.4%) Nebraska (0.4%) and North Dakota (0.4%).