LPS: Mortgage Delinquency Rate lowest since May 2008, Foreclosure inventories lowest since March 2009

According to the First Look report for May to be released today by Lender Processing Services (LPS), the percent of loans delinquent decreased in May compared to April, and declined about 12% year-over-year. Also the percent of loans in the foreclosure process declined further in May and were down almost 27% 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 6.08% from 6.21% in April. Note: the normal rate for delinquencies is around 4.5% to 5%.

The percent of loans in the foreclosure process declined to 3.05% in May from 3.17% in April. 

The number of delinquent properties, but not in foreclosure, is down about 13% year-over-year (452,000 fewer properties delinquent), and the number of properties in the foreclosure process is down 27% or 585,000 properties year-over-year.

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

LPS will release the complete mortgage monitor for May in early July.

LPS: Percent Loans Delinquent and in Foreclosure Process
	May 2013	Apr 2013	May 2012
Delinquent	6.08%	6.21%	7.20%
In Foreclosure	3.05%	3.17%	4.12%
Number of properties:
Number of properties that are 30 or more, and less than 90 days past due, but not in foreclosure:	1,708,000	1,717,000	1,924,000
Number of properties that are 90 or more days delinquent, but not in foreclosure:	1,335,000	1,394,000	1,571,000
Number of properties in foreclosure pre-sale inventory:	1,525,000	1,588,000	2,111,000
Total Properties	4,569,000	4,699,000	5,605,000