Foreclosures Down to 69,000 in March, Inventory Also Down

Year-over-year, the number of completed foreclosures decreased about 19 percent to 69,000 in March 2012 compared to 85,000 in March 2011, according to CoreLogic’s National Foreclosure Report for March. Month-over-month, with the number of completed foreclosures in February 2012 at 66,000, foreclosures increased about 4.5 percent in March 2012.

On a quarterly basis, foreclosures decreased to 198,000 in the first quarter of 2012 compared to 232,000 through the same quarter a year ago.
Overall, since the start of the financial crisis in September 2008, there have been approximately 3.5 million completed foreclosures.
In addition to the yearly and quarterly decreases in completed foreclosures, the number of loans in the foreclosure inventory decreased by nearly 6 percent, or 100,000, in March 2012 compared to the year before.
“Since the foreclosure inventory is also coming down, this suggests that loan modifications, short sales, deeds-in-lieu are increasingly being used as an alternative to foreclosures to clear distressed assets in our communities. This is what was envisioned with the recent National Foreclosure Settlement, and can often be a better outcome for both borrowers and investors,” said Anand Nallathambi, CEO of CoreLogic.
Out of all homes with a mortgage, approximately 1.4 million homes, or 3.4 percent were in the national foreclosure inventory as of March 2012 compared to 1.5 million, or 3.5 percent, the same month a year ago, and 1.4 million, or 3.4 percent, in the prior month of February.
Delinquencies are also down, with the share of borrowers nationally that were more than 90 days late on their mortgage payment, including homes in foreclosure and real estate owned (REO) assets, dropping to 7 percent in March 2012 from 7.5 percent a year ago, and remained unchanged compared to the prior month.
“The overall delinquency level was unchanged in March, remaining at its lowest point since July 2009,” said Mark Fleming, CoreLogic’s chief economist.
The distressed clearing ratio for March was up at 0.81 compared to 0.76 in February 2012. A higher ratio indicates a faster pace of REO sales relative to the pace of completed foreclosures.
As for individual states, strides were more notably made with non-judicial states.
“Non-judicial foreclosure markets like Nevada, Arizona, and California are experiencing significant improvements in their shares of delinquent borrowers. Some judicial foreclosure states are also improving, like Florida, but not to the extent of non-judicial markets,” said Fleming.
Year-over-year, the percentage of 90-plus delinquencies in Nevada decreased 3.7, while in Arizona the drop was 3.2 percent and in California 2.2 percent. Judicial state Florida saw a 1 percent decrease in its percentage of delinquent borrowers.
Highest % of Foreclosure Inventory
Florida (12.1 percent)
New Jersey (6.6 percent)
Illinois (5.4 percent)
Nevada (4.9 percent)
New York (4.9 percent)
Lowest % of Foreclosure Inventory
Wyoming (0.7 percent)
Alaska (0.8 percent)
North Dakota (0.8 percent)
Nebraska (1.1 percent)
South Dakota (1.4 percent)
Five States with the Most Foreclosures
(Over 12 months ending in March 2012)
California (150,000)
Florida (92,000)
Michigan (62,000)
Arizona (58,000)
Texas (57,000)
The five states account for 49.1 percent of all completed foreclosures nationally.
CoreLogic is a provider of consumer, financial and property information, analytics, and services to businesses and the government.

05/01/2012 BY: ESTHER CHO