Increase in the Mortgage Delinquency Rate in August but Fewer Foreclosures

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The mortgage delinquency rate in the United States was 5.90% in August, according to the Mortgage Monitor report compiled by the Data and Analytics team of Black Knight Financial Services. It increased by 4.68% from July. This was the highest month-to-month increase since February of this year.

The mortgage delinquency rate is a measure of the number of home loans which are 30 or more days past due, but not in foreclosure. It reached 3 million in August. Some 146,000 new mortgages became 30 days past due during the month. Even though the the monthly increase in the mortgage delinquency rate was the highest since the middle of the first quarter of 2014, it is 4.80% lower compared to August 2013.

Out of the 3 million delinquent home loans, 1.14 million were 90 or more days past due, but not in foreclosure. Their number rose by 7,000 compared to July of this year. Still, the number of seriously delinquent mortgages is lower than August 2013. There were 145,000 more seriously delinquent home loans a year ago.

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At the same time, the foreclosure starts in the United States dropped down by 10.03% in August to a level of 81,600. The annual decrease was 24.16%.
The foreclosure pre-sale inventory was 913,000 in August. The number of loans in foreclosure decreased by 22,000 from July of this year and by 145,000 from August of last year. The foreclosure pre-sale rate was 1.80% in August 2014. It marked a monthly decline of 2.80% and an annual decline of 32.39%. In August of this year it reached its lowest level since the end of the first quarter of 2008.

The total number of delinquent mortgages and those in foreclosure was 3,908,000 in August. It rose by 123,000 from July of this year. However, there were 577,000 fewer non-current home loans compared to August 2013.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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