Mortgage Delinquencies Down Nearly 30% From The Peak, But Foreclosure Inventories Up

A new report by Lender Processing Services, Inc. shows mortgage delinquencies continue their decline, now nearly 30% off their January 2010 peak. Meanwhile, foreclosure inventories are on the rise, reaching an all-time high at the end of October 2011 of 4.29 percent of all active mortgages.

The average days delinquent for loans in foreclosure extended as well, setting a new record of 631 days since last payment, while the average days delinquent for loans 90 or more days past due but not yet in foreclosure decreased for the second consecutive month.

According to LPS, 7.93% of mortgages were delinquent in October 2011, down from 8.09% in September 2011, and down from 9.29% in October 2010.

LPS reports that a record 4.29% of mortgages were in the foreclosure process, up from 4.18% in September 2011, and up from 3.92% in October 2010. That's a total of 12.22% delinquent or in foreclosure. It breaks down as follows:

2.33 million loans less than 90 days delinquent
1.76 million loans 90+ days delinquent
2.21 million loans in foreclosure process

For a total of 6.30 million loans delinquent or in foreclosure in October 2011.

This graph shows the total delinquent and in-foreclosure rates since 1995.

The details in this report suggest slow improvement with the exception of the large number of loans stuck in the foreclosure process.