Tuesday, November 29, 2016

Black Knight: Mortgage "Foreclosure Starts Hit Lowest Level Since January 2005" in October

by Bill McBride on 11/29/2016 07:01:00 AM

Note: There was a report of a "foreclosure spike" in October. This data shows the opposite happened.

From Black Knight: Black Knight’s First Look at October 2016 Mortgage Data: Foreclosure Starts Hit Lowest Level Since January 2005; Foreclosure Rate Falls Below One Percent for First Time Since July 2007

• October’s 56,500 foreclosure starts is the lowest one-month total in nearly 12 years

  • Delinquencies see modest seasonal increase in October; still down nine percent from last year

  • Active foreclosure inventory continues to improve, just over 500,000 active foreclosure cases remain

  • Prepayment activity down slightly from September but remains 37 percent above last year’s level
According to Black Knight's First Look report for October, the percent of loans delinquent increased 2% in October compared to September, and declined 8.9% year-over-year.

The percent of loans in the foreclosure process declined 1% in October and were down 30% over the last year.

Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 4.35% in October, up from 4.27% in September.

The percent of loans in the foreclosure process declined in October to 0.99%.  This is the lowest level since July 2007.

The number of delinquent properties, but not in foreclosure, is down 214,000 properties year-over-year, and the number of properties in the foreclosure process is down 217,000 properties year-over-year.

Black Knight will release the complete mortgage monitor for October on December 5th.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
  Oct
2016
Sept
2016
Oct
2015
Oct
2014
Delinquent4.35%4.27%4.77%5.42%
In Foreclosure0.99%1.00%1.43%1.81%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:2,202,0002,165,0002,415,0002,731,000
Number of properties in foreclosure pre-sale inventory:504,000509,000721,000912,000
Total Properties2,706,0002,674,0003,136,0003,643,000