Fewer than 2 million homes remain in shadow inventory as of April, CoreLogic reported Tuesday.
This puts shadow inventory at a supply of 5.3 months and represents an 18 percent year-over-year decrease. The data provider also reported shadow inventory is 34 percent lower than the 2010 peak of 3 million. For its estimate, CoreLogic counts unlisted properties that are seriously delinquent, in foreclosure, or held as REOs as shadow inventory.
Currently, serious delinquencies make up the bulk of shadow inventory. Out of the total for shadow inventory, about 890,000 homes are seriously delinquent, while 761,000 are in some stage of foreclosure, and another 336,000 are REOs.
However, serious delinquencies, or mortgages past due by 90 days or more, are trending downward, falling to under 2.3 million in May, which represents 5.6 percent of mortgages.
“The stock of seriously delinquent homes, which is the main driver of shadow inventory, is at the lowest level since December 2008,” said Dr. Mark Fleming, chief economist for CoreLogic. “Over the last year it has decreased in 42 states by double-digit figures, resulting in rapid declines in shadow inventory for the first quarter of 2013.”
The number of homes in foreclosure inventory, or in some stage of foreclosure, totaled 1 million in May, down 29 percent from a year ago and down 3.3 percent over the last month. As a percentage, foreclosure inventory represents 2.6 percent of mortgages, down from 3.5 percent in May 2012.
Completed foreclosures also experienced a steep annual decrease, falling to 52,000 in May, down 27 percent from a year ago when completed foreclosures totaled 71,000. From April to May, however, completed foreclosures increased, rising 3.5 percent from 50,000 in April.
The state that accumulated the most completed foreclosures over the last year was Florida, where 103,000 homes have been lost to foreclosure.
California came in at second, with 76,000 completed foreclosures, followed by Michigan (64,000), Texas (51,000), and Georgia (47,000).The five states alone account nearly half of all completed foreclosures, CoreLogic stated.
Florida was also in the lead for foreclosure inventory, with 8.8 percent of mortgages in foreclosure. Also in the top five were New Jersey (6.0 percent), New York (4.8 percent), Maine (4.1 percent), and Connecticut (4.1 percent).
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