Short sales, loan modifications and other alternatives are driving down the number of foreclosures, according to a report released today from CoreLogic, a California analytics firm.
Foreclosures are on the decline because banks are working with borrowers, home sales are increasing and prices are stabilizing, according to the report.
• Short sales, modifications and other foreclosure alternatives are playing a larger role than in years past, and the flow of new foreclosures is declining with an improving economy.
• Mortgage performance is experiencing a slow and steady improvement as the 90+ day serious delinquency rate in March fell to 7 percent, the lowest rate since July 2009.
“This decline in serious delinquency represents a significant reduction of approximately three quarters of a million borrowers,” said Fleming in the report.
• Overall home sales activity continues to improve, with total sales eclipsing 410,000, up more than 20 percent from a year ago and the highest March sales rate since 2007.
• While the national market continues to improve, it masks regional variation where some local markets are improving much more rapidly than others. The most improved markets from a year ago are Phoenix, Boise and Salt Lake City.
• Home prices are at, or very close to, the bottom as the Memorial Day weekend approaches.