National Foreclosure Report

National Foreclosure Report
JANUARY 2016
1.6%
In January, the
foreclosure inventory
was down 1.6 percent
from December 2015,
representing 51 months
of consecutive year-overyear declines.
“In January, the national
foreclosure rate was
1.2 percent, down to
one-third the peak from
exactly five years earlier in
January 2011, a remarkable
improvement. The months’
supply of foreclosure fell
to 12 months, which is
modestly above the ninemonth rate seen 10 years
earlier and indicates the
market’s ability to clear
the stock of foreclosures is
close to normal.”
Frank Nothaft, chief economist at CoreLogic
© 2016 CoreLogic — Proprietary. This material may not be reproduced in any form without express written permission.
2
National Overview through January 2016
►►
There Were 38,000 Completed Foreclosures Nationally, Down From 46,000 in
January 2015
►►
Seriously Delinquent Rate Is at 3.2 Percent Lowest Level Since November 2007
►►
Approximately 456,000 homes in the United States were in some stage of foreclosure
Compared to 583,000 in January 2015
Completed Foreclosures
38K
16.2% 1.6%
in January 2016
Decline Year Over Year
Compared to December 2015
A CoreLogic analysis shows 38,000 foreclosures were completed in January 2016, an 16.2 percent year-over-year
decline from 46,000* in January 2015. By comparison, before the decline in the housing market in 2007, completed
foreclosures averaged 21,000 per month nationwide between 2000 and 2006. On a month-over-month* basis,
completed foreclosures were down by 1.6 percent. Completed foreclosures are an indication of the total number of
homes actually lost to foreclosure.
* January 2015 data was revised. Revisions with public records are standard and to ensure accuracy, CoreLogic incorporates newly released data
to provide updated results.
© 2016 CoreLogic — Proprietary. This material may not be reproduced in any form without express written permission.
JANUARY 2016
3
National Foreclosure Inventory
THE FORECLOSURE
RATE, CURRENTLY AT
1.2 PERCENT, IS BACK TO
NOVEMBER 2007 LEVELS.
21.7%
1.2%
Compared to January 2015
Of All Homes with a Mortgage
Approximately 456,000 homes in the United States were in some
stage of foreclosure as of January 2016, compared to 583,000
in January* 2015, a decrease of 21.7 percent. This was the 51st
consecutive month with a year-over-year decline. As of January
2016, the foreclosure inventory represented 1.2 percent of all homes
with a mortgage, compared to 1.5 percent in January 2015.
* January 2015 data was revised. Revisions with public records are standard and to ensure accuracy, CoreLogic
incorporates newly released data to provide updated results.
“The improvement in distressed properties continues across the
country in every state which is contributing to the lack of stock of
available homes and resulting price escalation in many markets. So
far the trend toward lower delinquency and foreclosures has been
immune from shocks from such things as the collapse in oil prices
attesting to the durability of the housing recovery.”
Anand Nallathambi, president and CEO of CoreLogic
© 2016 CoreLogic — Proprietary. This material may not be reproduced in any form without express written permission.
4
Time Series – National Overview
*in Thousands
Serious
Delinquency*
-MOM %
Chg in #
-YOY %
Chg in #
Foreclosure
Inventory*
FEB15
MAR15
APR15
MAY15
JUN15
JUL15
AUG15
SEP15
OCT15
NOV15
DEC15
JAN16
1,563
1,484
1,447
1,419
1,380
1,387
1,362
1,344
1,321
1,283
1,267
1,245
-2.7%
-5.1%
-2.4%
-2.0%
-2.7%
0.5%
-1.8%
-1.3%
-1.7%
-2.9%
-1.2%
-1.7%
-20.2% -21.4% -21.1% -20.9% -21.9% -20.1% -20.7% -20.7% -19.9% -22.3% -22.2% -22.5%
571
556
530
516
507
500
498
490
477
463
463
456
3.2%
THE PERCENTAGE
OF MORTGAGES
-MOM %
Chg in #
-2.0%
-2.6%
-4.6%
-2.7%
-1.8%
-1.4%
-0.4%
-1.5%
-2.8%
-2.9%
0.1%
-1.6%
IN SERIOUS
DELINQUENCY IS
AT 3.2 PERCENT IN
-YOY %
Chg in #
Completed
Foreclosures*
-MOM %
Chg in #
-YOY %
Chg in #
-12-Month
Sum*
-27.7% -26.6% -26.5% -26.2% -26.3% -25.7% -23.6% -23.7% -21.9% -22.0% -21.4% -21.7%
37
42
43
40
39
39
-17.8%
11.5%
2.6%
-6.7%
-1.6%
-1.7%
62
36
59.5% -41.9%
35
29
33
38
-1.9%
-17.3%
12.8%
16.4%
JANUARY 2016
-20.0% -15.1% -15.3% -22.3% -22.5% -23.4% 33.4% -47.1% -31.7% -29.8% -20.9% -16.2%
584
576
568
557
546
534
549
517
501
489
480
473
THE FORECLOSURE INVENTORY RECORDED 51 STRAIGHT MONTHS OF DECLINES.
© 2016 CoreLogic — Proprietary. This material may not be reproduced in any form without express written permission.
JANUARY 2016
5
Foreclosure Inventory by State
1.0%
0.5%
2.1%
0.4%
1.2%
1.2%
29
0.4%
0.7%
0.7%
0.6%
0.6%
0.4%
0.4%
states have an inventory of
foreclosed homes lower than
the national rate
0.4%
0.4%
2.0%
1.4%
0.9%
0.6%
1.3%
4.3%
0.7% 0.5%
2.1%
1.6%
2.3%
0.7%
0.5%
1.5%
1.8%
1.8%
1.4%
1.2%
0.7%
1.3%
1.6%
0.9%
0.5%
1.6%
3.5%
0.4%
0.9%
1.1%
4 states + DC with highest foreclosure inventory as a percentage of mortgaged
jan 2016
0.9% 0.7%
1.3%
0.6%
0.3%
0.7%
2.4%
2.4%
4.3%
0.3%
Two states
As of January 2016
Source: CoreLogic Market Trends
Showed declines of more than
30 percent in year-over-year
foreclosure inventory, with
Florida (−36.6%) and Nevada
(−30.5%) experiencing the
greatest year-over-year declines
Four states and the District of Columbia with the highest
foreclosure inventory as a percentage of mortgaged homes
5 states with lowest foreclosure inventory as a percentage of mortgaged hom
jan 2016
New Jersey
4.3%
New York
Hawaii
3.5%
2.4%
Florida
2.3%
D.C.
2.3%
Five states with the lowest foreclosure inventory
as a percentage of mortgaged homes
Alaska
0.3%
Minnesota
0.4%
Colorado
0.4%
Arizona
0.4%
Utah
0.4%
© 2016 CoreLogic — Proprietary. This material may not be reproduced in any form without express written permission.
6
551
298
24,000
CA
OH
97
25,000
FL
MI
TX
DC
ND
WY
WV
AK
Five states with the highest number
Four states and the District of
of completed foreclosures during
Columbia, with the lowest number
past 12 months
of completed foreclosures during
past 12 months
* VT and SD were removed from the list for
incomplete data
Percent of Homes in Foreclosure
5.19x4.29
Layout>axes>primary horizontal axis>show right to left axis
8.5pt and 5.5pt
29,000
49,000
74,000
These five states
account for
almost half of
all completed
foreclosures
nationally.
589
707
State Highlights
Judicial
Judicial
Non-Judicial
AK
MN
CO
AZ
UT
CA
ND
MI
NE
VA
MT
TN
WY
SD
MO
TX
GA
NH
WI
AL
ID
WV
NC
KS
IA
MS
AR
WA
SC
OR
KY
VT
IN
LA
MA
OH
IL
OK
MD
NV
PA
RI
CT
NM
ME
DE
DC
FL
HI
NY
NJ
0%
Non-Judicial
Thirty nine states
posted a year-over-year,
double-digit decline
in foreclosures. Two
states, Rhode Island
(+7.7 percent) and
Delaware (+5.9 percent)
experienced increases.
1%
2%
3%
4%
5%
6%
7%
Source: CoreLogic January 2016
© 2016 CoreLogic — Proprietary. This material may not be reproduced in any form without express written permission.
JANUARY 2016
7
State Foreclosure Data
Judicial States
FORECLOSURE
INVENTORY
FORECLOSURE
INVENTORY PCT.
CHANGE FROM
A YEAR AGO
COMPLETED
FORECLOSURES
(12 MONTHS
ENDING
JANUARY 2016)
SERIOUS
DELINQUENCY
RATE
Florida
2.4%
-36.6%
74,303
5.2%
Ohio
1.4%
-14.1%
23,614
3.8%
Foreclosure Inventory
Rate:1.2%
Pennsylvania
1.6%
-16.8%
18,989
4.1%
Illinois
1.4%
-27.7%
13,240
3.8%
Foreclosure Inventory
Pct. Change from
a Year Ago:
−21.7%
Indiana
1.3%
-14.6%
12,924
3.4%
New Jersey
4.3%
-22.7%
12,808
7.5%
New York
3.5%
-15.9%
12,045
6.2%
Maryland
1.6%
-25.6%
8,052
4.5%
South Carolina
1.1%
-27.1%
7,282
3.4%
Serious Delinquency:3.2%
Oklahoma
1.5%
-11.9%
7,074
3.6%
Serious Delinquency
Pct.Change from
a Year Ago:
−22.5% YOY
Oregon
1.2%
-25.2%
5,963
2.6%
Wisconsin
0.7%
-14.2%
5,713
2.1%
Louisiana
1.3%
-7.7%
5,448
4.3%
Connecticut
1.8%
-18.9%
3,585
4.3%
Kentucky
1.2%
-10.2%
3,137
3.2%
Kansas
0.9%
-11.6%
2,698
2.7%
New Mexico
2.0%
-7.7%
1,785
4.1%
Delaware
2.1%
5.9%
1,280
4.4%
Maine
2.1%
-3.8%
806
4.7%
Hawaii
2.4%
-17.9%
739
3.9%
North Dakota
0.4%
-8.1%
298
1.0%
Vermont
1.2%
-16.8%
.
2.7%
JUDICIAL STATES
National
Completed Foreclosures
(12 months ending
January 2016):472,659
Source: CoreLogic January 2016
© 2016 CoreLogic — Proprietary. This material may not be reproduced in any form without express written permission.
8
State Foreclosure Data
Non-Judicial States
FORECLOSURE
INVENTORY
FORECLOSURE
INVENTORY PCT.
CHANGE FROM
A YEAR AGO
COMPLETED
FORECLOSURES
(12 MONTHS
ENDING
JANUARY 2016)
SERIOUS
DELINQUENCY
RATE
Michigan
0.4%
-29.8%
49,032
2.2%
Texas
0.6%
-12.3%
28,761
2.7%
California
0.4%
-24.3%
25,154
1.6%
Georgia
0.7%
-20.9%
23,500
3.3%
North Carolina
0.7%
-18.0%
15,834
2.9%
Tennessee
0.5%
-27.4%
14,349
3.3%
Virginia
0.5%
-20.3%
12,137
2.2%
Missouri
0.6%
-15.9%
11,302
2.6%
Arizona
0.4%
-23.0%
11,000
1.7%
Washington
1.0%
-22.2%
9,979
2.3%
Alabama
0.7%
-18.1%
8,591
3.8%
Nevada
1.6%
-30.5%
6,564
4.0%
Minnesota
0.4%
-29.7%
5,362
1.7%
Massachusetts
1.3%
-4.2%
4,599
3.4%
Colorado
0.4%
-28.8%
4,362
1.3%
Arkansas
0.9%
-10.1%
4,177
3.6%
Iowa
0.9%
-11.7%
3,440
2.2%
Idaho
0.7%
-21.4%
2,634
1.7%
Utah
0.4%
-24.0%
2,302
1.6%
New Hampshire
0.7%
-19.5%
1,457
2.2%
Nebraska
0.5%
-6.8%
1,366
1.8%
Rhode Island
1.8%
7.7%
1,243
4.5%
Mississippi
0.9%
-16.4%
1,044
4.9%
Montana
0.5%
-12.7%
726
1.4%
Alaska
0.3%
-3.1%
707
1.1%
West Virginia
0.7%
-16.9%
589
3.1%
Wyoming
0.6%
-4.5%
551
1.7%
District of Columbia
2.3%
-9.4%
97
3.7%
South Dakota
0.6%
-10.0%
.
1.5%
NON−JUDICIAL
STATES
National
Foreclosure Inventory
Rate:1.2%
Foreclosure Inventory
Pct. Change from
a Year Ago:
−21.7%
Completed Foreclosures
(12 months ending
January 2016):472,659
Serious Delinquency:3.2%
Serious Delinquency
Pct.Change from
a Year Ago:
−22.5% YOY
Source: CoreLogic January 2016
© 2016 CoreLogic — Proprietary. This material may not be reproduced in any form without express written permission.
JANUARY 2016
9
Metropolitan Area Highlights
Foreclosure Data for the Largest Core Based Statistical Areas (CBSAs)
METROPOLITAN AREA
FORECLOSURE
INVENTORY
FORECLOSURE
INVENTORY PCT.
CHANGE FROM
A YEAR AGO
COMPLETED
FORECLOSURES
(12 MONTHS
ENDING JANUARY
2016)
SERIOUS
DELINQUENCY
RATE
Miami-Miami Beach-Kendall, FL
3.1%
-32.4%
6,919
7.0%
New York-Jersey City-White Plains, NY-NJ
3.5%
-20.3%
6,741
6.0%
Houston-The Woodlands-Sugar Land, TX
0.6%
-14.0%
5,837
2.6%
Chicago-Naperville-Arlington Heights, IL
1.6%
-29.6%
5,644
4.3%
Las Vegas-Henderson-Paradise, NV
1.7%
-29.1%
4,981
4.5%
Los Angeles-Long Beach-Glendale, CA
0.5%
-23.6%
4,250
1.8%
1.0%
-19.2%
3,805
2.9%
Denver-Aurora-Lakewood, CO
0.3%
-36.1%
1,332
1.0%
Boston, MA
1.2%
-8.4%
1,072
3.3%
0.1%
-34.3%
187
0.6%
Washington-Arlington-Alexandria, DC-VAMD-WV
San Francisco-Redwood City-South San
Francisco, CA
Source: CoreLogic January 2016
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10
National Foreclosure Report Methodology
The data in this report represents foreclosure activity reported through January 2016.
This report separates state data into judicial versus non-judicial foreclosure state categories. In judicial foreclosure states, lenders must provide
evidence to the courts of delinquency in order to move a borrower into foreclosure. In non-judicial foreclosure states, lenders can issue notices
of default directly to the borrower without court intervention. This is an important distinction since judicial states, as a rule, have longer
foreclosure timelines, thus affecting foreclosure statistics.
A completed foreclosure occurs when a property is auctioned and results in the purchase of the home at auction by either a third party, such
as an investor, or by the lender. If the home is purchased by the lender, it is moved into the lender’s real estate-owned (REO) inventory. In
“foreclosure by advertisement” states, a redemption period begins after the auction and runs for a statutory period, e.g., six months. During
that period, the borrower may regain the foreclosed home by paying all amounts due as calculated under the statute. For purposes of this
Foreclosure Report, because so few homes are actually redeemed following an auction, it is assumed that the foreclosure process ends in
“foreclosure by advertisement” states at the completion of the auction.
The foreclosure inventory represents the number and share of mortgaged homes that have been placed into the process of foreclosure by
the mortgage servicer. Mortgage servicers start the foreclosure process when the mortgage reaches a specific level of serious delinquency
as dictated by the investor for the mortgage loan. Once a foreclosure is “started,” and absent the borrower paying all amounts necessary to
halt the foreclosure, the home remains in foreclosure until the completed foreclosure results in the sale to a third party at auction or the home
enters the lender’s REO inventory. The data in this report accounts for only first liens against a property and does not include secondary liens.
The foreclosure inventory is measured only against homes that have an outstanding mortgage. Generally, homes with no mortgage liens are not
subject to foreclosure and are, therefore, excluded from the analysis. Approximately one-third of homes nationally are owned outright and do
not have a mortgage. CoreLogic has approximately 85 percent coverage of U.S. foreclosure data.
SOURCE: CORELOGIC
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republished or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without prior
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Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. This data is
compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.
ABOUT CORELOGIC
CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled services provider. The company’s combined
data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed
coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance
information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector.
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CONTACT
For more information, please email [email protected].
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JANUARY 2016
11
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