Nearly half of the mortgages that were in foreclosure in December 2013 were still in foreclosure as of the end of August, according to the Black Knight Financial Services August Mortgage Monitor released earlier in the week.
Black Knight reported that even though foreclosure inventory was down both month-over-month and year-over-year, 49 percent of mortgage loans nationwide that were in foreclosure in December of last year remained in that state as of August 31, 2014. Only 2 percent of borrowers who were in foreclosure last December had fully paid off their mortgage loans by the end of August, according to Black Knight.
Eight percent of borrowers in foreclosure in December 2013 had worked their way up to being current on their mortgages by the end of August, according to Black Knight. Four percent had sold their homes through a short sale or third party during that eight month period, and 23 percent had settled through active REO or REO liquidation.
Black Knight's data revealed that 2 percent of borrowers whose loans were in foreclosure last December were at least 30 days delinquent on their mortgage payments in August, and 12 percent were 60 or more days delinquent.
Ten percent of the mortgage loans that received modifications were in distress three months later, according to Black Knight.
According to Black Knight's data, 3.9 million properties nationwide were either 30 more days past due on mortgage payments or in foreclosure in August, which was a decline of 557,000 from August 2013 but an increase of 123,000 from July 2014.