U.S. Foreclosure jump 28 percent in January

hvactec

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Jan 17, 2010
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(Reuters) - Starts on U.S. home foreclosures shot up 28 percent in January, data provider Lender Processing Services (LPS.N) said on Tuesday in a report that suggested paper backlogs that had clogged the system were rapidly clearing.

U.S. lenders had cut back on foreclosure after accusations of faulty foreclosure practices had surfaced in late 2010.

Last month, five big U.S. banks reached a $25 billion settlement with the federal government to end a national investigation into claims of flaws in their foreclosure process, including allegations of so-called "robo-signing" of documents.

"One-month anomalies do occur, but make no mistake about it, this is a larger move than we've seen since the late 2010 period when the process reviews and moratoria really took hold," said Herb Blecher, senior vice president at LPS Applied Analytics, a unit of the Jacksonville, Florida-based company.

The LPS database represents about 70 percent of the nearly 50 million active mortgages serviced by the nation's largest lenders.

LPS also said foreclosure sales, which it defined as a bank repossession of a home from the borrower or in some cases the completion of a short sale, surged 29 percent in January from the previous month.

READ MORE Foreclosure starts jump 28 percent in January : LPS | Reuters
 
Backlog of foreclosures soon to hit local real estate markets...
:mad:
Foreclosure Sales Soar
March. 6, 2012 - Foreclosure sales spiked in the first month of 2012, up approximately percent respectively. Sales in non-judicial states outpaced judicial by over three to one, exacerbating the backlog of foreclosures soon to reach local real estate markets in states where court orders are required to foreclose on homes.
While foreclosure inventories in judicial states still far outweigh those in non-judicial, the recent surge in foreclosure sales is having a significant impact on pipeline ratios. Even in judicial states, the average pipeline ratio is now at 63 months; still more than twice as high as non-judicial states. This is down from a high of 147 months at its peak in February of 2011, according January data in LPS' First Look release of its Mortgage Monitor report. The spike in foreclosure activity may be a precursor to the release of hundreds of thousands of backlogged foreclosures unplugged by the multi-state attorneys general settlement concluded last month.

The January mortgage performance data also showed that new problem loan rates are still relatively low nationally at 1.4 percent. Still, pockets of trouble exist, and the top five states for new seriously delinquent loans in January were Nevada, Florida, Mississippi, Arizona and Georgia, respectively. As reported in LPS' First Look release, other key results from LPS' latest Mortgage Monitor report include:

* Total U.S. loan delinquency rate: 7.97 percent

* Month-over-month change in delinquency rate: -2.2 percent

* Total U.S foreclosure pre-sale inventory rate: 4.15 percent

* Month-over-month change in foreclosure pre-sale inventory rate: 1.1 percent

* States with highest percentage of non-current loans: FL, MS, NV, NJ, IL

* States with the lowest percentage of non-current loans: MT, AK, WY, SD, ND

Read more: Foreclosure Sales Soar - UPI.com
 
Foreclosures are followed by about a year by tax sales so housing prices are going to start really dropping.
 

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