Foreclosure completions declined significantly both month-over-month and year-over-year in October, but are still way above pre-recession levels, according to CoreLogic's October 2014 National Foreclosure Report released on Thursday. Foreclosure completions, which are an indicator of the number of homes lost to foreclosure, totaled 41,000 for October 2014. The total was down 26.4 percent from October 2013, when 55,000 foreclosures were completed. Month-over-month, foreclosure completions fell 34.1 percent, down from the 62,000 completions that were reported for September.
The number of foreclosure completions has dropped 65 percent from its peak achieved in September 2010, but October's foreclosure completion total was still almost double the pre-recession monthly average. Before the housing market crashed in 2007, foreclosure completions averaged about 21,000 per month nationwide between 2000 and 2006. In October, 1.6 percent of all homes with a mortgage in the U.S. were in some state of foreclosure, the lowest inventory percentage since May 2008.
The U.S. Department of Housing and Urban Development and Department of Treasury have announced enhancements to the government's Making Home Affordable program to assist homeowners who are struggling to make monthly mortgage payments. Homeowners who have modified loans through the Home Affordable Modification Program can now qualify for up to $10,000 in outstanding principal reduction if they are in good standing with their loans in the sixth year of modification.