Foreclosures Down, Delinquencies Up

By:: Peter King | July 11, 2011

Newly initiated foreclosures were up in May, while the number of homes actually lost to foreclosure fell for a second consecutive month. Meanwhile, mortgage delinquencies rose slightly for a second month in a row.

There were 176,000 foreclosures begun during the month, according to figures released today by the Hope Now Alliance, up from 163,000 in April. On an annual basis, foreclosure starts are down 14 percent from their monthly level of 205,000 in May 2010.

At the same time, the number of homes actually lost to foreclosure has been running at a far lower level. There were 68,000 foreclosure sales in May, down from 73,000 in April, and a 31 percent annual decline from the 99,000 reported in May 2010.

Foreclosure sales have been averaging close to 80,000 homes a month over the past 12 months, while newly initiated foreclosures have been running a nearly 210,000 a month during that same period. Foreclosure sales in particular fell off sharply following the revelation of the robo-signing scandal last October – they had been running around 100,000 a month – and have not rebounded despite the end of self-imposed foreclosure moratoria lenders initiated to correct foreclosure processing practices that led to the scandal.

Meanwhile, the number of mortgages at least 60 days past due trended up slightly for a second consecutive month, following a year of fairly steady declines. A total of 2.67 million mortgages were reported 60+ days delinquent in May, a less than 1 percent increase from 2.65 reported in April and following an identical increase from 2.63 million in March.

By comparison, 60+ day delinquencies are down 29 percent on an annual basis from the 3.77 million level reported in May 2010.

As for efforts to help homeowners avoid foreclosure, private loan modifications remained at a significantly reduced level for the second consecutive month in May, falling to 53,000 from 57,000 reported in April. By contrast, such proprietary modifications had ranged between 100,000 and 125,000 during 11 of the previous 12 months.

Permanent loan modifications performed under the federal Home Affordable Modification Program (HAMP) were up in May, increasing 12 percent to more than 32,000, up from 27,000 in April but in line with what HAMP numbers have been running over the past year.

Start here to compare mortgage 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.

Modify My Loan

National Rates

Loan Type	Today	+/-
30 yr fixed	3.69
15 yr fixed	3.00
5/1 ARM	2.75

Rates may contain points

Compare Rates »

Browse Mortgage Rates

Featured Guides

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

Loan Modification 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.