Industry NewsMortgage

REO inventory swells again

LPS report also shows increases in early delinquencies
Published on Jul 6, 2010

The number of homeowners who were 90 days or more late on their mortgages or in the foreclosure process continued to ease during May, but inventories of bank-owned properties grew for the fifth month in a row, according to the latest statistics collected from loan servicers by Lender Processing Services."Real estate owned," or REO inventory -- properties repossessed by lenders -- stood at 1.13 million, up less than 1 percent from April, but a 21.2 percent increase from a year ago, LPS said. In addition, 30- and 60-day delinquencies both posted increases from April to May as seasonal improvements in early-stage delinquencies tapered off, ensuring a steady stream of homes will continue to flow into the foreclosure pipeline.The latest LPS Mortgage Monitor report showed that the average number of days for a loan to move from 30 days delinquent to foreclosure sale continues to increase, to an all-time high of 449 days, meaning that many homes whose owners are newly delinquent won'...

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