Posted on Friday, April 1, 2011
CoreLogic has found additional loans, numbering around 2 million that are upside-downto the point that the owners have a mortgage at least 50% greater than the valueof the home, possibly adding to the shadow inventory in the future and doublingit. Lender Processing Services (LPS) estimates that, given the backlog of foreclosureprocessing, there may be as much as 30x the monthly sales volume of already foreclosedhomes. The February Mortgage Monitor report shows that both delinquencies and foreclosuresstarts have declined steadily over the last year, but a major reason for the backlogis the steadily increasing amount of time loans are spending in the foreclosure pipeline. The average time a loan in the 90+ day bucket has been delinquent by February was 351 days and those in foreclosure had been delinquent for 537 days.In January 2011 those figures were 344 and 523 respectively and 12 months earlier,in March 2010, the figures were 278 and 426 days. A report from Mortgage News Dailyindicates that 30% of loans in foreclosure have not made a payment in over two years.While foreclosure is a national problem, it has not been evenly distributed acrossthe country. Four states (AZ, CA, FL, and NV) have suffered the highest foreclosurerate and account for 42% of the foreclosure inventory today. If one adds in the next tier, adding Illinois, New York, and New Jersey, that represents 60% of allforeclosures.