Foreclosed Loans Are at a Nine-Year Low: Black Knight

The percentage of foreclosed mortgages reached its lowest point in nine years, according to Black Knight Financial Services' September First Look report.

The presale foreclosure rate of 1% represents a 3.38% decline from August and a 31.23% year-over-year decline. There are 509,000 homes in the presale inventory, down 18,000 from the previous month and 228,000 from last September.

There were 61,700 foreclosure starts for the month, a 10.32% reduction from the previous month and a drop of 22.78% from September 2015.

There are 2.17 million properties which are more than 30 days late but not in foreclosure as of Sept. 30, an increase of 14,000, but down by 292,000 one year ago.

The delinquency rate increased just 74 basis points from August, to 4.27%. This is down 12.24% from last September.

Prepayment rates were down from August by 7.59% to 1.54%. This was the third highest in the past three years, as rates until recently continued to remain low and refinance volume high in the aftermath of the Brexit vote, Black Knight said.