Delinquencies Down, Foreclosures Up

By:: Peter King | December 29, 2010

The number of homes in foreclosure rose for the fifth consecutive month in November, even as mortgage delinquencies declined across the board, as lenders cut back on sales of distressed properties in the wake of the robo-signing controversy.

Total mortgage delinquencies fell by 2.9 percent during the month, and foreclosure starts declined by 0.8 percent, according to new monthly figures from Lender Processing Services. However, the number of homes in foreclosure actually rose by 4.1 percent at the same time, and now represents 4.08 percent of all U.S. mortgages.

The number of homes in foreclosure has increased over the past year as lenders began working to clear out a backlog of seriously delinquent loans. However, the current increase is largely due to a sharp reduction in foreclosure sales, which have fallen by half over the past two months since the robo-signing controversy broke.

Foreclosure sales had been trending upward since May, reaching a post-crash peak of more than 120,000 units in September, but plummeted to a November level of 60,000 units in the current report. Several large lenders temporarily halted foreclosure actions in October to investigate reports of faulty foreclosure documentation practices that were at the center of the robo-signing scandal.

A total of 261,000 mortgages were referred for foreclosure in November, a 0.8 percent monthly decline, but an increase of 18.5 percent from November 2009. Meanwhile, mortgage delinquencies are down 15.6 percent over the same period, since peaking at the start of 2010.

Nearly 2.16 million mortgages are currently in foreclosure, the highest level since the start of the housing crisis. Just over 2.16 million are seriously delinquent, past due by 90 days or more, although that figure has declined from a peak of 3.04 million in February 2010.

Start here to compare debt consolidation rates from top lenders in our network

Call For Rates

800-419-1494

Speak to a lender now.

We will match calls to our toll free number with our network of lenders.

Debt Consolidation

National Rates

Loan Type	Today	+/-
30 yr fixed	3.69
15 yr fixed	3.00
5/1 ARM	2.69

Rates may contain points

Compare Rates »

Browse Mortgage Rates

Featured Guides

Browse our comprehensive guides to popular topics related to mortgage and personal finance.

Debt Calculators

Mortgage Loan Directory and Information, LLC or Mortgageloan.com does not offer loans or mortgages. Mortgageloan.com is not a lender or a mortgage broker. Mortgageloan.com is a website that provides information about mortgages and loans and does not offer loans or mortgages directly or indirectly through representatives or agents. We do not engage in direct marketing by phone or email towards consumers. Contact our support if you are suspicious of any fraudulent activities or if you have any questions.

Mortgageloan.com is a news and information service providing editorial content and directory information in the field of mortgages and loans. Mortgageloan.com is not responsible for the accuracy of information or responsible for the accuracy of the rates, APR or loan information posted by brokers, lenders or advertisers.