The Mortgage Screen for January (pdf) from Black Knight Financial Services (BKFS, previously LPS) reported that there were 659,237 house mortgages, or 1.30 % of all home loans outstanding, continuing to be in the foreclosure procedure at the end of January. This was down from 688,672, or 1.37 % of all active loans that remained in repossession at the end of December, and below 1.76 % of all mortgages that remained in foreclosure in January of in 2014. # 160; These are house owners who had a foreclosure notification served but whose homes had not yet been seized, and the January foreclosure inventory is now revealing the most affordablethe most affordable percentage of houses that were in the foreclosure process considering that the fall of 2007. # 160; # 160; New repossession begins, which have actually been volatile from month to month, was up to 71,900 in January from 78,088 in December and from 93,280 in January a year ago, while they were still higher than the 66,626 repossession starts we saw in November, which had actually been the most affordablethe most affordable since the crisis began. # 160; Over the past year, new foreclosure starts have actually stayed in a range about one-third higher than variety of new repossessions we we seeing in the precrisis year of 2005.
In addition to houses in foreclosure, BKFS information revealed that 2,574,560 mortgages, or 5.09 % of all home loan loans, or were at least one home loan payment overdue however not in repossession in January, up from 4.78 % of property owners with a home loan who were more than 30 days behind in December, however still below the mortgage delinquency rate of 5.42 % in January a year earlier. # 160; Of those who were delinquent in January, 831,284 househomeowner, or 1.65 % of those with a mortgage, were considered seriously delinquent, implying they were more than 90 days behind on home loan payments, but still not in repossession at the end of the month, which was up from 807,656 seriously overdue home loans in December. # 160; Combining the totals delinquent home mortgages with those in repossession, we discover that a total of 6.39 % of homeowners with a mortgage were either late in paying or in repossession at the end of January, and that 2.95 % of all homeowners were in severe trouble, ie, either seriously delinquent or already in foreclosure at month end.
As those of you whove paid attentionfocused on the monthly changes in mortgages delinquencies understand, there is a seasonal pattern in delinquencies, as late housepayments usually increase before the Holidays as house owners defer their home mortgage payments in order to do Christmas shopping. # 160; Then we generally see a big drop in home loans delinquencies throughout January, February and March, as homeowners catch up on their bills. # 160; Thus, a 6.62 % increase in January home mortgage delinquencies is uncommon, as January normally sees a decrease of overdue home mortgages ranging from 2.4 % to 3.1 %. # 160; To look at that increase closer, the chart from page 6 of this months home mortgage monitor were consisting of listed below divides into 4 types of mortgage delinquencies the number of mortgages that were farther behind in their home mortgage payments than they were in the previous month for each month given that 2005. # 160; Those that were existing in the previous month however ended up being overdue in the reporting month are showndisplayed in red; those that transitioned from one month late to two months late are showndisplayed in green; while those that transitioned from 2 months late to 3 months late are revealed in violet. # 160; Lastly, of those who were more than 90 days overdue in the previous month who were foreclosed on in each month is revealed in blue. # 160; Here we can see in red that over 580,000 house mortgages ended up being recently overdue in January, a 129,000 home loan or 28 % boost from those that became newly overdue in December. # 160; In addition, there was a boost of 21,000 mortgages, or 11 % greater than in December, that rolled from 1 month late to 2 months behind on their housepayments, while 7,500 homeowners, or 7 % more than those who had actually rolled from 2 months to 3 months late in December, have rolled to 3 months late in January. # 160; Finally, we can see in blue that the number of those who were seriously overdue who were foreclosed on in January fell by about 7.8 %, as our earlier protection kept in mind …
As you know, the Mortgage Display (pdf) is a mainly graphics discussion from what was once the Analytics department of Loan provider Processing Solutions that covers a range of home mortgage relevant issues each month. # 160; One issue they took a look at this month was the potential threat exposure that home mortgage holders dealt with in three states where courts are pondering how statutes of limitations laws must be used to repossessions. # 160; As you ought to remember, 10s of thousands of house owners have actually been stuck in the repossession procedure for years due to the fact that of the lengthy repossession pipelines and trouble in establishing clear title and right to foreclose after the evisceration of public land records by MERS and the banks during the real estate boom, and now courts in Florida, New Jersey and New york city are deciding whether statutes of limitations laws ought to apply to significantly overdue mortgages in those states. # 160; According to BKFS, as much as 98,000 seriously delinquent housemortgage with an unsettled principal balance of roughly $30 billion may be subject to such statutes of limitations (ie, home loans that are more than five years overdue in Florida or more than six years unpaid in New Jersey and New York). # 160; Furthermore, approximately $1 out of every $10 of principal in private-label securitizations in these 3 states is tied to such a mortgage.
The bar chart listed below, from page 11 of the Home mortgage Monitor, offers us a graphic representation of the number of seriously overdue mortgages more than 6 years overdue in New york city and New Jersey, and the number of seriously delinquent mortgages more than 5 years overdue in Florida, with the dark blue bars representing the count as of this January report, and the light blue bars representing the count as of a year earlier. # 160; As the callout on the chart notes, Florida still has the most delinquent mortgages based on statute of limitations law, in spite of a 38 % drop in such mortgages over the past year (ie, recommending a biga multitude of Florida foreclosures were completed) however the number of such home loans is still growing in New york city and New Jersey, where they have sluggish repossession courts and incredibly long foreclosure pipelines. # 160; And this can get worseworsen than shown here, thinking about that approximately 40 % of foreclosures that took locationoccurred during the crisis have not yet reached the 6 year statute of restrictions in those states. # 160; If you are a citizen of these states or are interested in more detail, page 12 of the home loan screen breaks down the variety of such home mortgages based on statute of limitation laws by county, and if you are a financier in home loans, page 13 of the home mortgage screen has a graphic representation, in millions or billions of dollars, of the direct exposure of such securities to the overdue primary balance (UPB) of such home mortgages in these states.
For a historical summary of those metrics, and the other data that we have actually talked about, were including below that part of the Home loan Screen table showing the regular monthly count of active home mortgage loans and their delinquency status, which comes from the bottom part of page 18 of the pdf. # 160; The columns in the table listed below show the overall active home mortgagehome loan count nationally for each month provided, variety of home loans that were delinquent by more than 90 days however not yet in repossession, the monthly count of those mortgages that are in the repossession procedure (FC), the overall non-current home loans, including those that just missed one or 2a couple of payments, then the number of repossession begins for each month over the past year, and for each January shown returning to January 2005. # 160; In the last two columns, we see the typical length of time that those who have actually been more than 90 days overdue have continued to be in their houses without foreclosure, and then the average number of days those in repossession have actually been stuck in that procedure due to the fact that of the lengthy foreclosure pipeline. The typical length of delinquency for those who have been more than 90 days overdue without foreclosure has actually reduced from the April record of 536 days and is now at 495 days, while the average time for those who have actually remained in repossession without a resolution has now dropped a bit its record high set in November but at 1047 days is still at approximately almost 3 years.
(Note: the above was excerpted from my post on Marketwatch 666)