The 7.03% mortgage delinquency rate in July marks a 30% decline from the January 2010 peak, according to new data from Jacksonville, Fla.-based Lender Processing Services (LPS). On a month-over-month basis, the delinquency rate was down 1.6% from June.
‘The July mortgage performance data shows a continuing correlation between negative equity and new problem loans,’ says Herb Blecher, senior vice president of LPS Applied Analytics. ‘Nationally, 18 percent of borrowers who are current on their loan payments are underwater, ranging from a low of 0.4 percent in Wyoming to nearly 55 percent in Nevada.’
LPS' July data also shows that non-judicial foreclosure states continue to see greater improvement in non-current rates (including loans 30 or more days delinquent or in foreclosure) than those in their judicial counterparts. On a year-over-year basis, judicial states have seen non-current inventories decline 3.1%, as compared to an 8.7% drop in non-judicial states.
The states with highest percentage of non-current loans were Florida, Mississippi, Nevada, New Jersey and Illinois. The states with the lowest percentage of non-current loans were Montana, Alaska, Wyoming, South Dakota and North Dakota.