Foreclosure starts were up in August by nearly 20% compared to July's results, with first-time foreclosure starts reaching 2011 highs, according to new data released by Jacksonville, Fla.-based Lender Processing Services (LPS). However, foreclosure starts remained down more than 12% from August 2010.
According to LPS, the total U.S. loan delinquency rate stands at 8.13%, while the total U.S foreclosure presale inventory rate was 4.11%. Approximately 4 million loans were either 90 or more days delinquent or in foreclosure in August.
LPS adds that of the nearly 46 million loans that were current as of the end of August, 23% were still at risk as a result of negative equity. LPS has also determined that the average delinquencies in nonjudicial states continue to be about six months shorter at time of foreclosure sale compared to judicial states, which are facing a large volume of court backlogs.
The states with the highest percentage of non-current loans are Florida, Mississippi, Nevada, New Jersey and Illinois, while the states with the lowest percentage of non-current loans are North Dakota, South Dakota, Alaska, Wyoming and Montana.