In multiple articles around the Web, it’s being reported that recent numbers indicate a significant drop in foreclosures and homeowners dropping behind in their mortgage payments.
- Foreclosure filings in April fell for the third straight month to the lowest level since 2007.
- Bank repossessions, at 51,415 in April, were down 26% from a year ago and about half what they were in September 2010.
- In Arizona and Nevada, hard-hit states, bank repossessions were down roughly 70%, and in California they were down more than 50%.
- In the first quarter of this year, the percentage of borrowers who have dropped behind on their mortgage payments fell to a four year low.
- The percentage of loans delinquent fell to 11.33% in the first quarter, the lowest level since 2008.
- New delinquencies, loans just one payment past due, were at their lowest level since 2007 in March.
- The percentage of new delinquencies was 3.1%, matching the historical average level going back to the 1990s.
There is a definite difference between activity in non-judicial and judicial foreclosure states. Judicial states are behind in clearing foreclosure inventories, but non-judicial states are making up for it.
Another reason for faster liquidation of delinquent home inventories is the new attitude taken on by banks as regards short sales. Banks are looking much more favorably toward short sales than in the past, and new rules from Fannie and Freddie are helping to speed up short sales.
Investors are certainly enjoying the situation. While there may be fewer foreclosures coming online in many states, prices are still at bargain-basement levels. With mortgage rates bouncing off new historic lows again this week, it’s a great time for buying, flipping, and holding rental properties.