Foreclosure Starts in November Fell to Lowest Level Since 2000

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Foreclosure starts fell dramatically in November, reaching the lowest level since at least 2000, according to Black Knight’s First Look report.

Lenders started the foreclosure process on about 33,500 single-family residential properties during the month, a decrease of 23.69% compared with October and down 25.88% compared with November 2018.

The pre-sale foreclosure inventory rate also fell in November. It stood at about 0.47%, a decrease of 3.31% compared with the previous month and a decrease of about 9.11% compared with a year earlier.

As of the end of November, there were about 248,000 homes in the pre-sale foreclosure inventory, down about 7,000 compared with October and down about 20,000 compared with November 2018.

It was the lowest pre-sale foreclosure inventory rate since 2005.

Meanwhile, mortgage delinquencies crept up slightly in November, rising to 3.53% of all outstanding loans.

Although that’s an increase 4.18% compared with October, it’s down 4.72% compared with November 2018.

About 1.868 million mortgages were 30 days or more past due, an increase of about 82,000 compared with the previous month but down about 57,000 compared with a year earlier.

The month-over-month increase in delinquencies was in keeping with seasonal cycles.

Serious delinquencies – 90 days or more past due but not in foreclosure – also edged up slightly. They increased by about 6,000 compared with October but were down by about 71,000 compared with November 2018.

The monthly prepayment rate also fell – however, it remained up considerably from a year ago. The prepayment rate as of the end of November was 1.46%, down 19.06% compared with October but up 122.88% compared with November 2018.

The monthly prepayment rate hit a six-year high in October, and remains high due mainly to increased refinance activity resulting from lower interest rates.

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