Across the board, loan performance improved for February, and foreclosure starts were down compared to the month before in January, according to a report from LPS Applied Analytics. Despite the decrease in foreclosure starts, foreclosure inventory still remains near historic highs, while delinquency rates are at their lowest level since August 2008, LPS reported.
Foreclosure inventory was at 4.13 percent in February, a 0.5 percent monthly decrease, but still remains high. In December 2005, foreclosure inventory was at 0.48 percent.
Foreclosure sales decreased in both judicial and non-judicial foreclosure states, dropping 22 and 15 percent month-over-month, respectively, in February.
Even with the decrease in foreclosure sales, national pipeline ratios – 90-plus delinquencies and foreclosures divided by the 6 month average of foreclosure sales – continued to decline, but still varies by region.
Once peaking at 123 months in April 2011, the average pipeline ratio in judicial states stood at 84 months in February, compared to 33 months in non-judicial states.
Pipeline ratios continue to be higher in the Northeast, particularly in New York and New Jersey, where average pipelines average 846 and 772 months, respectively. Also, the percentage of inventory more than two years past due remains high due to low foreclosure sales…
Read the rest of this article by DSNews.com here: “Loan Performance Improves, Foreclosure Starts Down, LPS Reports“.