States that rely on judicial foreclosures to clear delinquent loans are swamped with large inventories of problem homes with the overall process taking six months longer than in non-judicial states, according to a new report from Lender Processing Services, Jacksonville, Fla.
LPS in its ‘Mortgage Monitor Report' says that the time from “last payment” to foreclosure sale now takes 761 days in states where a judicial process is required.
In states where non-judicial foreclosures are the norm the process is quicker by 180 days. The findings reflect activity at the end of September.
“Ranked by the percentage of loans that are non-current, seven of the top 10 states are judicial foreclosure states,” the firms notes.
LPS says that foreclosure inventories in these states continue to climb, accounting for nearly 7% “of the entire active loan count.”
Its latest findings show that the national delinquency rate fell to 8.09% in September, a slight improvement from August.
During the month, the states with the highest percentage of non-current loans included Florida, Mississippi, Nevada, New Jersey and Illinois.
The best performing states were North Dakota, South Dakota, Wyoming, Alaska, and Montana.
