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Foreclosure Inventory Down Nearly 35 Percent Year-Over-Year in July


Foreclosure activity was down all over the nation in July, particularly in the area of foreclosure inventory – homes that are in any stage of the foreclosure process – where there was a 34.4 percent drop from July 2013, according to CoreLogic's July 2014 National Foreclosure Report released on August 27.

CoreLogic reported a foreclosure inventory of about 640,000 for July 2014 compared to 976,000 in July 2013. Analysts believe that number could drop to as low as 500,000 by the end of the year based on current trends. July 2014 was the 18th consecutive month in which there was a year-over-year decrease of 20 percent or more for foreclosure inventory. Only two places in the nation did not experience double-digit declines year-over-year in foreclosure inventory: District of Columbia had a 6.3 percent decrease and Wyoming had a 14.6 percent increase.

"The picture is considerably brighter in the non-judicial states which maintain consistently lower foreclosure stocks and, in general, lower levels of serious delinquency," said Anand Nallathambi, president and CEO of CoreLogic. "In total, there are now 36 states with an inventory of foreclosed homes lower than the national rate of 1.7 percent."

In July 2014, there were approximately 45,000 foreclosures completed, compared to 57,000 in July 2013, according to CoreLogic – a decline of 21.2 percent. Month-over-month, the number of completed foreclosures fell by 8.5 percent from 49,000 down to 45,000.

"The stock of distressed debt continues to rapidly decline, especially in western states," said Sam Khater, deputy chief economist at CoreLogic. "The number of seriously delinquent loans fell by more than 25 percent from the prior year in 10 states and seven of those states were in the west."

Foreclosure inventory made up 1.6 percent of all mortgages in the nation in July, a decrease of 2.4 percent from a year ago. Inventory fell 3.3 percent from June, marking the 33rd consecutive month foreclosure inventory percentage fell year-over-year, according to CoreLogic. Nebraska and Alaska were the states with the lowest rate in the nation with 0.4 percent of homes with a mortgage in some stage of foreclosure.

The number of completed foreclosures is dropping but still has a way to get back to its pre-2007 levels, before the decline of the housing market. The nation averaged about 21,000 completed foreclosures per month from 2000 to 2006. Since the beginning of the financial crisis in 2008, approximately 5.1 million foreclosures have been completed nationwide.

About Author: Brian Honea

Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.

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