There are approximately 4.1 million loans nationwide that are 90 days delinquent or in foreclosure, according to Lender Processing Services’ May Mortgage Monitor report.




LPS said in its report that foreclosure sales totaled 78,676 at the end of May. The combination of serious delinquencies and foreclosures outnumber foreclosure sales by 50:1.



LPS said the East Coast has experienced the worst fall in foreclosure sales, led by Washington, DC with a decline of 96%, then Maryland at 80%, New York at 79% and lastly New Jersey at 75%.



“There are still significantly fewer foreclosure sales than there were before moratoria were put into place, and foreclosure sales are declining,” the Jacksonville-based mortgage processing and technology firm said.



The overall delinquency rate for the nation is 7.96%, a month-over-month decline of only 0.1% and a yearly drop of 18.3%. However, the firm said delinquencies are almost double and foreclosures are eight times higher historical norms.



More than 40% of loans that are 90 or more days delinquent have not made a payment in over a year, while 33% have gone two years without any payments.



New problem loans—loans that were current six months ago and were 60 or more days delinquent at the end of May—are now at 1.27%, which is less than half the peak high experienced in 2009.



The firm is also concerned about negative equity loans, in which 30% of current loans are at risk of having negative equity. Of the 70% of loans in foreclosure with negative equity, over 35% have a combined LTV of more than 150%.



“The equity impact on new seriously delinquent loans is significant, with loans significantly underwater defaulting up to 10 times as much as loans with equity,” the firm said.



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California Pending Home Sales Rise - Finally some not so bad news

This is a excerpt from National Mortgage News published today.
California pending home sales increased in May, resulting in the first year-over-year increase in 18 months, according to the California Association of Realtors.

The index in May rose 1.6% from the previous month, which is based on contracts signed. Compared to May 2010, this year’s index was up by 12%.

“May marked the largest annual increase since August 2009,” said Beth Peerce, president of the California Association of Realtors.

“May’s increase in pending sales is consistent with our expectation that home sales in the second half of 2011 should be higher compared with the second half of 2010. As a result, annual sales for all of 2011 should match or exceed last year’s annual pace.”

The total share of distressed properties sold remained the same from April to May at 48%. However, the total is up 2% in May 2010. Madera County had the most distressed homes sold last month at 90%, followed by Lake County at 80% and Solano County at 71%.

Of the distressed properties sold throughout the state, REO sales was the same from month-to-month at 28%. This share is also up 2% from the same time period last year.

Statewide short sales were down from May 2010 by 1%, currently at 19% of the total monthly sales.