Serious delinquent borrowers — those late on their payments for 90 days or more but not yet in foreclosure — grew significantly in the month of June, according to Black Knight.
Those properties ballooned to over 1.87 million in June from 631,000 in May and 455,000 in June 2019. This happened because "the initial wave of borrowers financially impacted by COVID-19 missed their third mortgage payment," Black Knight’s press release said.
By state, Mississippi had the highest share of noncurrent mortgages, at 12.46%, followed by Louisiana's 11.71% and New York's 10.9%, while Idaho's 4.37%, Washington's 4.82% and Montana's 5.07% had the lowest.
Loans at least 30 days late on their payment or already in foreclosure at the end of June crept down to 4.23 million in June from 4.32 in May. That decline represents the first of its kind in 2020. While the short-term presents positivity for borrowers with more people returning to work, the annual lookback is staggering, as only 2.31 million such loans existed the year prior.
The delinquency rate — which does not include loans in foreclosure — dropped to 7.59% from May's near-nine-year high of 7.76%. June's rate more than doubled the year-ago pace of 3.73% and the record low of
And with coronavirus moratoriums still in place, foreclosures fell to the lowest level since Black Knight began recording this metric in 2000.
Foreclosure inventory dropped to 192,000 in June from
With interest rates
