Monthly foreclosures were worse, but delinquency improved — pulling the overall rate lower.
Home-loan delinquency of at least 90 days, including foreclosures, was 13.08 percent in the July Mortgage Monitor report from Lender Processing Services Inc. Late payments fell from 13.20 percent in June.
LPS extrapolated delinquency data from its database of 36,208,618 loans as of May.
Excluding foreclosures in process, the delinquency rate was 9.33 percent, falling from 9.55 percent a month earlier.
But the foreclosure inventory swelled to 3.75 percent from June’s 3.65 percent.
LPSÂ said an increase in foreclosure starts was consistent with “the Department of Treasury’s latest report that approximately half of all Home Affordable Modification Program trial modifications resulted in cancellation, though 45.4 percent of those have resulted in alternative (non-HAMP) modifications.”
As was the case in June, agency prime mortgages had the biggest month-over-month increase in foreclosure inventory. It was the second-biggest jump since January 2009. While non-agency jumbo foreclosures have seen a bigger increase during the same period, the latest activity suggests a decline has begun.
Around 895,000 mortgages that were current at the beginning of January are now 60 days past due or in foreclosure. That was 120,000 more than in June.
Total noncurrent loans were worst in Florida at 23.6 percent. Nevada closely followed with 21.6 percent, then Mississippi’s 18.40 percent. Next was Georgia’s 15.6 percent and Arizona’s 14.6 percent.
The lowest delinquency was in North Dakota: 4.6 percent.
Excluding foreclosures, Mississippi’s 15.6 percent delinquency rate was higher than any other state. But Florida’s 12.8 percent foreclosure inventory put it over the top overall.
LPS said 53,929,920 mortgages were outstanding on July 31, fewer than 54,079,031 on June 30 and 54,932,955 a year earlier.