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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