Foreclosures are falling quickly as
more borrowers keep up with their mortgage payments and banks complete
more loan modifications or approve short sales to avoid foreclosures on
their books.
For the first time since 2008, the number of borrowers who are behind
on their payments or in foreclosure dropped below 5 million, according
to a new report reflecting March data by Lender Processing Services.
The number of mortgages in foreclosure dropped to below 1.69 million
in March, which marks the lowest level in nearly four years and a drop
of nearly 20 percent compared to one year ago.
About 3.4 percent of all U.S. mortgages were in foreclosure by the
end of March, which is a decrease from 4.2 percent a year ago, Lender
Processing Services reports.
In March, about 6.6 percent of all borrowers were in some stage of
delinquency, excluding those in foreclosure. That percentage is down by 3
percent from a year ago, but is still high by historical standards.
Prior to the housing crisis, about 5 percent of all borrowers were
delinquent on their mortgages and 1 percent of loans were in
foreclosure, LPS reports.
Source: “Bad Mortgages Hit Lowest Level Since 2008,” The Wall Street Journal (April 23, 2013)