The July 2016 National Foreclosure Report, released today by data and analytics provider CoreLogic, reports that the national inventory of homes in some stage of the foreclosure process has declined by 29.1% since July 2015, and the inventory of completed foreclosures has declined by 16.5% in the same period. 34,000 completed foreclosures took place during July 2016, down by 71.2% from the peak of 118,009 in September of 2010.
In July 2016, the national foreclosure inventory included approximately 0.9% of all homes with a mortgage, or 355,000 homes – a 0.4% decrease in inventory since July 2015, when 1.3% of homes with a mortgage were in foreclosure. The July 2016 foreclosure inventory rate is the lowest recorded since August 2007 – or just before the beginning of the financial crisis.
“Loan modifications, foreclosures, and stronger housing and labor markets have each played a role in bringing the foreclosure rate to the lowest level in nine years,” said Dr. Frank Nothaft, chief economist for CoreLogic.
The number of mortgages in serious delinquency (90 days or more past due) has declined by 17.3% from July 2015 to July 2016, and now covers 2.9% of all homes with a mortgage. State by state, declines were observed in 47 states and the District of Columbia.
“Foreclosure rates declined year over year in all states except North Dakota, which experienced a 6 percent increase in its foreclosure inventory related to the drop in energy-related jobs,” said Anand Nallathambi, president and CEO of CoreLogic. “Importantly, judicial states like New Jersey and New York have continued to work through their large inventory of homes in foreclosure proceedings.”
In the 12 months ending in July 2016, the five states with the highest completed foreclosure rates were Florida (57,000), Michigan (45,000), Texas (27,000), Ohio (23,000) and California (21,000). Taken together, these states account for almost 40% of all completed foreclosures. In the same period, the District of Columbia saw the lowest number of completed foreclosures (207). New Jersey had the highest foreclosure inventory rate in the nation, at 3.3%, while Colorado had the lowest, at 0.3%.
CoreLogic’s foreclosure data covers approximately 85% of total U.S. foreclosure activity. The report separates its state-by-state data into judicial and non-judicial state categories for the purposes of reporting and comparing foreclosure rates. Judicial states require court proceedings in order to move a home into foreclosure, while non-judicial states do not. As a result, judicial states often have longer foreclosure time lines than non-judicial states.