The steady decline in new delinquencies stopped in November and progress in reducing the volume of future foreclosures has hit a wall.
Even though 60 day delinquencies ended the month of November 25 percent lower than a year ago, the 18 month trend toward fewer delinquencies ended as homeowners continued to struggle with their finances, according to Lender Processing Services, Inc.
At the same time, new problem loans - those loans seriously delinquent as of the end of November that were current six months prior - have not improved significantly in the last year. As a result, inventories of troubled loans remain significantly higher than pre-crisis levels across the board.
The November mortgage performance data also showed both new and repeat foreclosure starts dropped sharply in November, down nearly 30 percent from the month prior. As late-stage delinquencies in the pipeline still number close to 2 million, the sharp drop is more indicative of the impact of ongoing document reviews, additional state legislation and new regulatory requirements rather than a shift in trend.
The national delinquency rate rose 2.7 percent in November to 8.15 percent.
States with highest percentage of non-current* loans: FL, MS, NV, NJ, IL States with the lowest percentage of non-current* loans: ND, AK, WY, SD, MT.