Marc Guzman's West County Blog
After four months of seeing the number of delinquent mortgages decline, Lender Processing Services (LPS) documented the first increase for the month of November. The new data shows a 3% increase in month-over-month of delinquent loans 30+ days past due but not yet in foreclosure. Overall, the number of delinquent mortgages from a year ago is down and calculated at 6,260,000 delinquent mortgages for November. This represents about 1 in 8 residential mortgages in the nation.
As you can see from the data released in November, the number of delinquent mortgages is down by 192,000 or 2.9% since July 2011. What is very shocking about this data is that in the last 4 months, the overall number of delinquent mortgages decreased an average of 48,000/month. These are delinquent loans that the homeowner either 1) paid current, 2) completed a short sale, 3) deeded the property back to the bank, or 4) bank foreclosed. Of course this figure takes into account new delinquencies but at this pace, assuming November’s increase in delinquencies reverses, we are looking at another 130 months or 10.9-years to process through all delinquent mortgages.
