The total foreclosed on homes has dropped to its lowest level since December 2007 according to CoreLogic’s May 2015 National Foreclosure Report. The report states that the number of foreclosures nationwide dropped to 41,000 in May. Today’s foreclosure totals are now 65% lower than the number of completed foreclosures in 2010.
The report continues a similar trend reported early in the year, when foreclosures fell by 27% in February and completed foreclosures fell by 15% year over year.
Mortgages also have seen big drops in delinquent payments. Mortgages in serious delinquency—or mortgages that are 90 days or more overdue—dropped by 23% in May based on year-over-year totals. Currently, 1.3 million mortgages are delinquent. Sounds big—but that 3.5% rate is the lowest seen since January of 2008.
Having both lower foreclosure totals and less delinquent payments reflect positively on the current housing market and overall United States economic outlook. As more people have found consistent jobs and as housing prices have recovered and provided equity to many homeowners, foreclosures and delinquent mortgages have gone down. Having less people defaulting on their loans will create a more balanced, deeper, less volatile housing market—something buyers and sellers alike can benefit from.
Hart Real Estate Solutions