A new report from Lender Processing Services revealed that foreclosure inventory levels were more than 30 times that of monthly foreclosure sales volume last month.
And the average loan in foreclosure has now been delinquent for an astounding (record) 537 days, while 30 percent of those in foreclosure haven’t made a mortgage payment in over two years (lots of free rent).
The numbers indicate a huge foreclosure backlog, exacerbated by the ongoing robosigning scandal, which should put downward pressure on home prices for some time as mortgage lenders are forced to sell them on the open market.
“In terms of absolute numbers, Option ARM foreclosures stand at 18.8 percent, a higher level than Subprime foreclosures ever reached,” the company said in a release.
“In addition, deterioration continues in the Non-Agency Prime segment. Both Jumbo and Conforming Non-Agency Prime loans showed increases in foreclosures and were the only product areas with increases in delinquencies.”
On a positive note, loan modifications are beginning to pay off, as 22 percent of loans that were 90+ days delinquent a year ago are now deemed current.
As of the end of last month, the delinquency rate was 8.8 percent and the foreclosure inventory rate stood at 4.15 percent.