US foreclosures are down for first time in 12 years

Photo by Sharon McCutcheon on Unsplash

Veronika Bondarenko | Inman.com

In an excellent sign for the housing market, more Americans are able to make timely payments on their home mortgages and fewer are losing their homes to foreclosure that at any point in the last 12 years, according to the latest CoreLogic Loan Performance Insights Report published on Tuesday by the real estate data and software company.

Across the country, the number of homeowners who were not able to pay their mortgages for 30 or more days dropped to 4.2 percent in May 2018, down 0.3 percentage points from the previous year. Foreclosure rates — in which a house is seized due to the owner’s inability to pay — are down 0.2 percentage points year-over-year at 0.5 percent, making the current rates the lowest they’ve been since 2006.

States hit by storms, hurricanes, wildfires and other natural disasters in 2017 had the highest numbers of delinquencies and foreclosures in the latest report.

“Serious delinquency rates continue to remain lower than a year earlier except in Florida and Texas, the hardest-hit states during last year’s hurricane season,” said Frank Martell, president and CEO of CoreLogic, in a statement. “We have observed continued challenges for families to make mortgage payments in regions impacted during the 2017 Hurricane season.”

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