7,018,000 United States mortgages that are 30 or more days behind or in process of foreclosure

There are 7,018,000 mortgages in the United States that are 30 or more days delinquent or in the process of foreclosure, according to new data from Lender Processing Services (LPS).

The Florida-based analytics and technology firm offered the media a preview Friday of its September month-end mortgage performance figures, derived from the company’s loan-level database of nearly 40 million mortgage loans.

Of the more than 7 million home loans in the country currently going unpaid, 2,055,000 have already commenced foreclosure proceedings. LPS reports that
4,963,000 are in the pre-foreclosure default stages, with nearly half of these falling into the 90-plus-days delinquent bucket.
LPS’ measurement of the U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure) rose to 9.27 percent as of the end of September. That’s a 0.6 percent increase over the previous month, but down 7.8 percent compared to last September.
The nation’s pre-sale foreclosure inventory rate stands at 3.84 percent, according to LPS’ market data – up 1.1 percent from the August reading and 3.6 percent above a year earlier.
LPS says the states with the highest percentage of non-current loans (defined as the total number of foreclosures and delinquencies as a percent of all active loans in that state) include: Florida, Nevada, Mississippi, Georgia, and Louisiana.
The lowest percentage of non-current loans can be found in: Montana, Wyoming, Arkansas, South Dakota, and North Dakota.
LPS will provide a more in-depth review of this data in its September Mortgage Monitor report, is scheduled for release on October 29

Bank of America to Postpone Foreclosure Sales in all 50 states effective Saturday, October 9, 2010

Bank of America Corp. said it is placing a moratorium on all foreclosure sales across the U.S., amid political pressure on U.S. banks to examine foreclosure-documentation problems.

The nation’s largest bank by assets is the first financial institution to stop all foreclosure sales amid revelations that the banking industry had used “robo signers,” people who sign hundreds of documents a day without reviewing their contents, when foreclosing on homes. Bank of America, J.P. Morgan Chase & Co. and Ally Financial Inc. (parent of GMAC Mortgage) last week postponed foreclosures in 23 states where a court’s approval is required to foreclosure on a home.

Bank of America also decided Friday to review the affidavits being used in foreclosure proceedings in the rest of the 50 states so the accuracy of the documents can be assessed.

Thus far “our ongoing assessment shows the basis for our past foreclosure decisions is accurate,” a Bank of America spokesman said.

The bank hasn’t halted all foreclosure proceedings, however. If a borrower is delinquent, the bank is still issuing notices of default and pursuing efforts to modify certain mortgages, the spokesman said.


This moratorium refers only to “foreclosure sales” and does not apply to the  “foreclosure process” leading up to sale.






Short Sale effects on credit score

  • A Short Sale occurs when a lender agrees to accept an offer on your home that is less than the amount owed against the home. This occurs when there is little or no equity in the home to pay all closing costs and sales commissions. Not all lenders will negotiate a short sale. You will be required to provide documentation about your earnings, financial hardship and other information requested by the lender. It is advisable to contact a real estate professional and an attorney to help you navigate through this process. 
  • Currently there appears to be less damage to a credit report and a faster ability to obtain credit to purchase a new home after a short sale involving late pays than a foreclosure.  This may be due to fact that borrower/home owner finds a potential purchaser for the property and while the lender may ultimately loose money on the deal, they save money on legal expenses and do not have to potentially take back the home, pay insurance or market the homeon their own.
  • Moreover, another advantage is the ability to buy another home within 2 years over the 5- to 7-year period required for foreclosures. And there are other short sale advantages over a foreclosure. But seek legal and tax advice before making that decision.
  • FHA adopted guidelines in 2010 that say a seller who is current and does a short sale may qualify to immediately buy another home. Lenders aren’t so quick to follow those guidelines.
  •  There is more awareness of short sales in light of the current economic slow down and housing market.   There seem to be many new and proposed government directives to encourage short sales to reduce the large number of homes facing potential foreclosure and large supply of homes for sale.