Data released by Lender Processing Services (LPS) last Thursday indicates foreclosure and delinquency numbers are on the rise again. The company’s report shows that foreclosures were initiated on 217,486 loans in June, up more than 10% from May. Interestingly enough, the company says most foreclosure starts are occurring on loans that are less than six months delinquent. LPS also found that foreclosure timelines are continuing to lengthen, with the average loan in foreclosure having been delinquent for a record 587 days.
More than 40% of 90-plus day delinquencies have not made a payment in more than a year, according toLPS. For loans in foreclosure, 35% have been delinquent for more than two years. LPS’ latest market assessment shows that as of the end of June, 4.1 million loans were either 90-plus days delinquent or in foreclosure. That’s nearly 13% more than in June 2010.