For many first-time buyers, investing in a foreclosures or otherwise delinquent property is easy as they often come at a discounted price, which has helped lower the overall inventory of these homes. However, Lender Processing Services' December Mortgage Monitor report revealed mortgage delinquency rates have continued to be high, though levels were 32 percent lower than the rate from January 2010 when it reached a historic high.
According to the report, the total U.S. loan delinquency rate was 7.17 percent, that's 0.7 percent increase from the previous month. The total foreclosure pre-sale inventory rate was 3.44 percent. Florida, New Jersey, Nevada and New York all posted some of the highest percentages of underwater homeowners, while Wyoming, Arkansas, North Dakota and South Dakota all has some of the lowest percentages of non current loans.
According to LPS Applied Analytics Senior Vice President Herb Blecher, 2012 also saw a return to relatively high levels of mortgage origination activity.
"Though still a long way off from the historic level of originations that preceded the mortgage crisis, 2012 was the strongest full year of originations we've seen since 2007," said Herb Blecher, senior vice president of LPS applied analytics. "Volumes were up approximately 34 percent year over year, with about 8.6 million new loans originated. And, while the majority of these new loans were government-backed - 84 percent in 2012 as compared to just over 50 percent at the peak - the trend over the last four years does suggest a slowly resurgent non-agency lending market."