LPS: Mortgage Delinquency Rate falls below 6.5% in April, Lowest since July 2008

According to the First Look report for April to be released today by Lender Processing Services (LPS), the percent of loans delinquent decreased in April compared to March, and declined about 10% year-over-year. Also the percent of loans in the foreclosure process declined further in April and were down almost 25% over the last year.

LPS reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) decreased to 6.21% from 6.59% in March. Note: the normal rate for delinquencies is around 4.5% to 5%.

The percent of loans in the foreclosure process declined to 3.17% in April from 3.37% in March. 

The number of delinquent properties, but not in foreclosure, is down about 11% year-over-year (375,000 fewer properties delinquent), and the number of properties in the foreclosure process is down 25% or 543,000 properties year-over-year.

The percent (and number) of loans 90+ days delinquent and in the foreclosure process is still very high, but declining fairly quickly.

LPS will release the complete mortgage monitor for April in early June.

LPS: Percent Loans Delinquent and in Foreclosure Process
	Apr 2013	Mar 2013	Apr 2012
Delinquent	6.21%	6.59%	6.87%
In Foreclosure	3.17%	3.37%	4.20%
Number of properties:
Number of properties that are 30 or more, and less than 90 days past due, but not in foreclosure:	1,717,000	1,842,000	1,890,000
Number of properties that are 90 or more days delinquent, but not in foreclosure:	1,394,000	1,466,000	1,596,000
Number of properties in foreclosure pre-sale inventory:	1,588,000	1,689,000	2,131,000
Total Properties	4,699,000	4,997,000	5,617,000