Lenders Chip Away at Foreclosure Inventories

Completed foreclosures rose in March, but the big drop in the number of distressed properties entering the pipeline remains encouraging, analysts say.

In March, 55,000 foreclosures were completed, a 6 percent increase from February, according to a newly released report from CoreLogic. But, overall, foreclosures have fallen more than 16 percent year-over-year. Completed foreclosures are down 52 percent from their 2010 peak, and nearly all of the top 100 major metro areas are posting declining foreclosure rates, says Mark Fleming, CoreLogic’s chief economist.

About 1.1 million homes were in the foreclosure process in March, a drop of 23 percent year-over-year.

“For 17 consecutive months, foreclosures have declined year over year across the U.S,” says Anand Nallathambi, president and CEO of CoreLogic. “Although we still have more than a million homes in some stage of foreclosure, this trend, combined with rising home prices, is another signal of a gradually improving housing market.”

The foreclosure inventory now makes up about 2.8 percent of all mortgaged homes. In February, that percentage stood at 3.5 percent.

The following five states accounted for nearly half of all completed foreclosures in March:

• California 
• Florida 
• Georgia 
• Michigan 
• Texas 

Source: CoreLogic and “More home foreclosures completed in March: CoreLogic,” Reuters (April 30, 2013)