Average foreclosure delinquency: 20 months

October 06th, 2011

Foreclosure doesn't come as fast as it used to, according to Lender Processing Services, a provider of real estate data. In fact, not only did August 2011 activity feature a record number of loans shifting from foreclosure back into delinquent status, suggesting that process reviews and potential loss mitigation activity are continuing, but the average mortgage loan in foreclosure was delinquent for a record 611 days. Foreclosure starts rose almost 20 percent in August from the previous month, and were at a high for 2011. However, foreclosure starts were off 12 percent from a year earlier.

Many loans still at risk

While foreclosures were down from a year earlier, there are still a lot of homeowners at risk. "Of the 46 million loans that were current as of the end of August, 23 percent were still at risk as a result of negative equity--a leading indicator of a borrower's propensity to default," according to a statement from Lender Processing Services.

The August total loan delinquency rate for the U.S. was 8.13 percent and the total U.S. foreclosure pre-sale inventory rate was 4.11 percent. The states with the highest percentage of non-current loans ere Florida, Mississippi, Nevada, New Jersey and Illinois. The states with the lowest percentage of non-current loans were North Dakota, South Dakota, Arkansas, Wyoming and Montana. Non-current loan totals include foreclosures and delinquencies as a percentage of loans that are active in a state.

Use mortgage calculators

It is important to get help with a troubled home loan before it gets out of control and gets to the delinquent stage. Continuing to make payments on time can be difficult, however, if your income just doesn't seem to stretch far enough. If you are fortunate to still have some home equity, check around to see if you can qualify for a refinance at a lower mortgage rate. Use a refinance calculator to look at how changing your interest rate would affect the monthly payments.

With the right mortgage calculators you'll be able to look at how much interest you'll pay over the life of a refinanced loan. You'll also be able to run different scenarios for bringing cash to closing to lower your principal when refinancing. With a closing cost calculator you'll get a good idea of the fees and expenses associated with getting a new loan.

 

 

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