Foreclosure inventories rose to all-time highs last month, according to the October Mortgage Monitor report released by Lender Processing Services.
As of the end of October, foreclosure inventories were 7.4 times higher than the historical average and rising.
This is due in part to accelerated foreclosure referral activity over the past several months, along with various moratoria lengthening the foreclosure timeline.
To that end, loans in the process of foreclosure but not yet taken back by the mortgage lender (bank-owned) are approaching an average 500 days past due.
And while six and 12-month delinquent loans are moving to foreclosure at a higher clip, extremely delinquent loans (12 months + late) continue to swell.
“A payment has not been made in more than [a] year on almost one-third of all loans that are 90 or more days delinquent. And, of loans that have not made a payment in two years, more than 18% are still not in foreclosure,” the company said in a release.
Last month, 263,000 mortgage loans entered the foreclosure process, a 4.4 percent month-over-month decline.
Meanwhile, total foreclosure inventory increased to nearly 2.1 million loans, with another 2.2 million loans in the “greater than 90-days delinquent, but not yet in foreclosure” category.