Mortgage foreclosures at lowest level in over a decade: Black Knight

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Mortgage foreclosure starts and active foreclosures were at their lowest level in over a decade although there was an increase in new delinquencies in June, according to Black Knight.

Mortgage delinquencies increased by 2.71% in June from the previous month, a typical seasonal rise in the rate, the Black Knight First Look report said. May's rate was 3.64%.

Delinquency rates rose over the fall and winter months, but that in some measure was attributed to borrowers affected by Hurricanes Harvey and Irma being unable to pay their mortgages.

There were 3.74% of outstanding mortgages 30 days or more late on payments but not yet in foreclosure in June. This was down 1.59% compared with June 2017's 3.8%

In 2017, there was a 0.12% increase in the delinquency rate between May and June.

There are now 1.925 million properties that are delinquent on their mortgage, up 58,000 from May but down 7,000 from one year ago.

The number of properties 90 days or more late on their mortgage was at a post-recession low, Black Knight said. This category peaked following last fall's hurricanes.

In June, there were 548,000 properties 90 days or longer late on their mortgage payment but not yet in foreclosure, down 20,000 from May and 7,000 from June 2017.

There were 43,500 foreclosure starts in June, down 3.12% from May and 23% from June 2017. That is the lowest single-month total in over 17 years.

Active foreclosures fell below 300,000 for the first time in nearly 12 years, to 291,000 properties. This was down 12,000 from May and 119,000 from June 2017.

Mississippi had the higher percentage of noncurrent mortgages (both delinquent and foreclosed mortgages) at 9.7% and of mortgages 90 days or more delinquent at 2.92%.

Meanwhile, Florida had the largest improvement in the percentage of noncurrent mortgages, over 39%, followed by Texas at 26.31% and Louisiana at 21.89%, a sign that the hurricane-related mortgage delinquencies are curing and working their way out of the system.

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Foreclosures Mortgage defaults Distressed Black Knight Mississippi Texas Florida