There were about 40,000 foreclosure starts in January, a surge of 30% compared with December and an increase of about 17.5% compared with January 2024, according to ICE Mortgage Technology’s First Look report.
This was mainly driven by an expiration in the VA foreclosure moratorium.
However, the U.S. mortgage delinquency rate fell to 3.47%, a decrease of 6.56% compared with December but up 2.83% compared with January 2024.
As of the end of the month, there were about 1.885 million mortgages 30 days or more past due, but not in foreclosure, down about 131,000 compared with the month prior but up about 82,000 compared with a year ago.
There were about 540,000 loans in serious delinquency (90 days more past due but not in foreclosure), down about 1,000 compared with December but up by about 70,000 compared with January 2024.
While the number of borrowers past due as a result of last year’s hurricanes has fallen from 58,000 to 41,000 in recent months, the financial impact from the recent Los Angeles wildfires is emerging, ICE says.
An estimated 680 homeowners in the path of the Los Angeles wildfires missed their January mortgage payment, and ICE daily mortgage performance data through Feb. 17 suggests as many as 3,300 borrowers may be at risk of missing their February payment.
The foreclosure pre-sale inventory rate stood at 0.38%, as of the end of January.
There were about 206,000 properties in the foreclosure pre-sale inventory, an increase of about 7.2%, or about 14,400, compared with the month prior, but a decrease of 7.41%, or about 13,000 compared with a year ago.
There were about 6,300 foreclosure sales (REO) in January, an increase of about 25% compared with December but a decrease of 5% compared with January 2024.
The monthly pre-payment rate was 0.48%, down about 16% compared with the month prior but up about 22% compared with January 2024.
That’s the lowest pre-payment level in nearly a year, driven by the combination of modestly higher rates and the typical seasonal slowdown in home sale activity, ICE says.
Photo: Agê Barros
