twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

Distressed Inventory Clear Times Down in Judicial States

Time to clear out U.S. distressed inventory down 5 months in Q3

Nov. 27, 2013

By Mortgage Daily staff

The amount of time it would take to clear out the distressed inventories of real estate in states that force lenders to foreclose through the courts has improved again. The news, however, wasn't so good for non-judicial states or the country as a whole.

The time to clear the U.S. distressed inventory was 49 months in the third quarter.

Distressed inventory includes first mortgages that are at least 90 days past due, in foreclosure or real estate owned as well as half of first mortgages that have been at least 90 days delinquent during the past 12 months but were cured or modified.

The latest reading was five months longer than in the previous quarter. The second-quarter timeline was revised up to 44 months from 41 months originally reported.

The findings were taken from the report, Q3 2013 Morningstar RMBS Distressed Inventory Index: Months to Clear Inventories in Judicial States Improving in Last Two Quarters While Inventories Continue to Grow Nationally, from Morningstar Credit Ratings LLC. The data for the report was sourced from CoreLogic Inc.

"The current trend is similar to that presented in the previous quarter," the report said.

Compared to the same three-month period in 2012, the forecasted time to clear out the distressed inventory has worsened by 11 months.

The longer clear-out period reflects slower liquidation rates.

In non-judicial foreclosure states, the time to clear out the distressed inventory was 38 months, longer than the 32 months in the second quarter.

But in judicial foreclosure states, the number of months fell to 61 from 63. It was the second quarter in a row that judicial state timelines were lower.

Despite the longer clearing times, the overall distressed inventory was down 5 percent from the second quarter to 891,000 units. The number of units has fallen by 20 percent over the past year.

In addition, the number of liquidations has fallen 39 percent from a year earlier. The report said that total distressed liquidation as a share of total paid-off continues to decline.

"The distressed inventory in judicial states accounts for approximately 57 percent of the total distressed inventory, compared to 43 percent since the beginning of 2008," the ratings agency said.

The report also indicated that the use of short sales is declining, while loan modification activity is being sustained.

The distressed inventory share in New Jersey was nearly 45 percent -- higher than any other state. Florida was next, then New York, Maine and Illinois.

With a share of around 12 percent, Colorado's was lowest.

next story

back to current headlines

Real Estate News | Real Estate Statistics
Residential real estate news and coverage of how residential real estate impacts the mortgage industry and residential mortgage-backed securities.

Mortgage Backed Securities | MBS News | MBS Statistics
News about commercial and residential mortgage-backed securities. Stories about ratings actions and changes to servicer ratings. Studies and reports about the performance of securitizations and problem vintages and classes. Subprime, Alt-A, home equity and j u m b o analysis.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders