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Foreclosures Slide to All-Time Low

While roughly twice as many foreclosure sales occurred within the month as compared to December 2020, there were only one-third as many as in pre-pandemic December 2019. Given the large volume of borrowers who've exited forbearance protections in recent months, the industry are keeping a close eye on foreclosure metrics moving forward in 2022.

Black Knight Inc. released the following "first look" at December 2021 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 3.38%

  • Month-over-month change: -5.88%
  • Year-over-year change: -44.46%

Total U.S. foreclosure pre-sale inventory rate: 0.24%

  • Month-over-month change: -3.80%
  • Year-over-year change: -27.98%

Total U.S. foreclosure starts: 4,100

  • Month-over-month change: 10.81%
  • Year-over-year change: -42.25%

Monthly prepayment rate (SMM): 1.65%

  • Month-over-month change: -7.31%
  • Year-over-year change: -47.60%

Foreclosure sales as % of 90+: 0.29%

  • Month-over-month change: 12.07%
  • Year-over-year change: 324.16%

Number of properties that are 30 or more days past due, but not in foreclosure: 1,799,000

  • Month-over-month change: -107,000
  • Year-over-year change: -1,452,000

Number of properties that are 90 or more days past due, but not in foreclosure: 946,000

  • Month-over-month change: -80,000
  • Year-over-year change: -1,200,000

Number of properties in foreclosure pre-sale inventory: 128,000

  • Month-over-month change: -4,000
  • Year-over-year change: -50,000

Number of properties that are 30 or more days past due or in foreclosure: 1,927,000

  • Month-over-month change: -112,000
  • Year-over-year change: -1,502,000

Some 0.24% of loans are in active foreclosure in December, a historic low, with the month's 4,100 foreclosure starts almost 90% below December 2019 levels. Prepayment activity fell by more than 7% in December and is projected to fall even further as rising rates continue to erode refinance incentive.

Top five states by non-current percentages were:

  1. Louisiana: 7.06%
  2. Mississippi: 6.91%
  3. West Virginia: 5.37%
  4. Alabama: 5.11%
  5. Oklahoma: 5.08%

Bottom five states by non-current percentage:

  1. Utah: 2.20%
  2. California: 2.13%
  3. Washington: 2.03%
  4. Colorado: 2.02%
  5. Idaho: 1.85%

Top five states by 90+ Days delinquent percentage:

  1. Louisiana: 3.84%
  2. Mississippi: 3.41%
  3. Oklahoma: 2.55%
  4. Alabama: 2.52%
  5. Arkansas: 2.50%

Top 5 states by 6-month improvement in non-current percentage:

  1. Hawaii: -46.54%
  2. Nevada: -35.61%
  3. California: -34.04%
  4. Vermont: -27.62%
  5. Washington: -27.28%

For a more detailed view of this month's data from Black Knight, click here.

About Author: Demetria Lester

Demetria C. Lester is a reporter for DS News and MReport magazines with more than eight years' writing experience. She has served as content coordinator and copy editor for the Los Angeles Daily News, the Orange County Register, in addition to 11 other Southern California publications. A former editor-in-chief at Northlake College and staff writer at her alma mater, the University of Texas at Arlington, she has covered events such as the Byron Nelson and Pac-12 Conferences, progressing into her freelance work with the Dallas Wings and D Magazine. Currently located in Dallas, Texas, Lester is a jazz aesthete and loves to read. She can be reached at [email protected]
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