Foreclosure starts jumped 20 percent from July to August, with first-time foreclosure starts hitting a 2011 high, data aggregator Lending Processing Services Inc. reports.

The 247,957 foreclosure starts LPS tracked nationwide in August represented a 12.2 percent decline from a year ago, but the number of homes in the foreclosure process remained near historic highs.

There were an estimated 2.15 million homes in the foreclosure process at the end of August, down slightly from 2.2 million in January. The owners of those homes were delinquent on their mortgages by an average of 611 days.

A record number of loans shifted from foreclosure back into delinquent status, suggesting that loan servicers continue to review processes in the wake of the robo signing controversy, and that loss mitigation activity continues, LPS said.

Foreclosure sales were down 36 percent nationwide from their September 2010 peaks, LPS said. In the 18 states where foreclosure sales dropped even more sharply, only five were nonjudicial foreclosure states that have been less severely impacted by the robo signing controversy.

All told, there were 6.4 million homes with owners who had missed one or more payments or were in foreclosure at the end of August, including 1.7 million homes behind by just one payment, and 674,000 delinquent by 60 days.

Although nearly 1.9 million mortgages were delinquent by 90 days or more, that’s down from 3 million at the start of 2010.

Among the nearly 46 million homes with current mortgages at the end of August, 23 percent were still at risk because their owners owed more than their homes were worth, LPS said.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription