by qrono
2. October 2009 07:05
Completed Foreclosures and Other Home Forfeiture Actions
During the second quarter of 2009, home forfeiture actions—foreclosure sales, short sales, and deeds-in- lieu of foreclosure—increased by 19.4 percent from the previous quarter. Completed foreclosures rose to
106,007, up 16.9 percent from the previous quarter, coinciding with the end of various federal, state, local, and servicer-imposed foreclosure moratoria. Short sales increased to 23,102, a 34.8 percent jump from the previous quarter.
While home forfeiture actions increased in the second quarter, banks and thrifts implemented nearly 3.4 times more home retention actions—loan modifications and payment plans—than completed foreclosures and other home forfeiture actions.
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Table 31. Completed Foreclosures and Other Home Forfeiture Actions
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|
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6/30/08 9/30/08 12/31/08 3/31/09 6/30/09
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1Q
%Change
|
1Y
%Change
|
|
New Short Sales
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9,402 13,015 15,588 17,141 23,102
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34.8%
|
145.7%
|
|
New Deed-in-Lieu-of-
Foreclosure Actions
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865 838 2,173 1,201 1,032
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-14.1%
|
19.3%
|
|
Completed
Foreclosures
|
117,325 126,266 89,634 90,696 106,007
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16.9%
|
-9.6%
|
|
Total
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127,592 140,119 107,395 109,038 130,141
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19.4%
|
2.0%
|
|
Newly Initiated Home
Retention Actions
Relative to Completed
Foreclosures and Other
Home Forfeiture Actions
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197.1% 191.8% 273.4% 331.4% 337.8%
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1.9%
|
71.4%
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Newly Initiated Foreclosures
The number of newly initiated foreclosures in the second quarter (369,226) was essentially unchanged from the number during the previous quarter. Newly initiated foreclosure decreased for all risk categories other than prime loans. Among prime loans, new foreclosures increased by 5.8 percent from the previous quarter, reflecting the decline in borrower credit quality within this largest group. Servicer emphasis on home retention actions, including those under the “Making Home Affordable” program, helped keep the number of newly initiated foreclosures flat despite rising serious delinquencies.
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Table 32. Number of Newly Initiated Foreclosures
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|
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6/30/08 9/30/08 12/31/08 3/31/09 6/30/09
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1Q
%Change
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1Y
%Change
|
|
Prime
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120,931 117,276 109,285 183,441 194,071
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5.8%
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60.5%
|
|
Alt-A
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60,392 57,651 53,914 72,702 68,622
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-5.6%
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13.6%
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|
Subprime
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74,961 75,789 68,204 75,508 69,382
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-8.1%
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-7.4%
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Other
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32,174 30,569 31,288 38,916 37,151
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-4.5%
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15.5%
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Total
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288,458 281,285 262,691 370,567 369,226
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-0.4%
|
28.0%
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Foreclosures in Process
Foreclosures in process rose to 992,554 and represented 2.9 percent of all serviced loans. This increase is largely attributable to continued adverse economic conditions exerting pressure on homeowners’ ability to remain current on mortgage obligations. The number of foreclosures in process jumped 15.3 percent
from the previous quarter and 79.4 from a year ago. Prime mortgages had the highest rate of increase in foreclosures in process, repeating the trends noted for newly initiated foreclosures.
The rate of newly initiated foreclosure actions continued to outpace the rate of foreclosure sales, causing the number of loans in process of foreclosure to increase. Many of these loans are remaining in process
of foreclosure for longer periods than before and never result in foreclosure sale or forfeiture of the home, as borrowers and servicers seek other resolutions.
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Table 33. Number of Foreclosures in Process
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6/30/08 9/30/08 12/31/08 3/31/09 6/30/09
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1Q
%Change
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1Y
%Change
|
|
Prime
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218,634 249,438 295,358 409,313 497,266
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21.5%
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127.4%
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|
Alt-A
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118,938 129,236 141,091 172,268 191,456
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11.1%
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61.0%
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Subprime
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155,288 168,225 172,146 184,468 199,432
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8.1%
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28.4%
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Other
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60,295 67,564 84,828 94,980 104,400
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9.9%
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73.1%
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Total
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553,155 614,463 693,423 861,029 992,554
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15.3%
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79.4%
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Number of Foreclosures in Process Relative to Mortgages in That Category
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|
Prime
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1.0% 1.1% 1.3% 1.8% 2.2%
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21.2%
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127.8%
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|
Alt-A
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3.3% 3.6% 4.0% 4.9% 5.4%
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10.9%
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63.7%
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Subprime
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5.0% 5.5% 5.7% 6.4% 7.0%
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9.7%
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39.6%
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Other
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1.2% 1.4% 1.7% 2.0% 2.3%
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17.1%
|
89.6%
|
|
Total
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1.6% 1.8% 2.0% 2.5% 2.9%
|
16.2%
|
83.5%
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Completed foreclosures increased by 15,311 from the previous quarter, an increase of 16.9 percent, but down nearly 10 percent from a year ago. The increase in completed foreclosures resulted primarily from the end of national, state, local, and servicer-imposed moratoria.
Foreclosures are completed when ownership of the properties is transferred to the servicers or investors and the mortgage debts are extinguished. Foreclosure processes vary by state and can take more than 15 months to complete. Many foreclosures never reach completion, as borrowers and servicers seek other resolutions.
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Table 34. Number of Completed Foreclosures
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|
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6/30/08 9/30/08 12/31/08 3/31/09 6/30/09
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1Q
%Change
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1Y
%Change
|
|
Prime
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43,238 52,571 35,296 39,910 50,108
|
25.6%
|
15.9%
|
|
Alt-A
|
26,932 27,405 18,573 17,872 19,777
|
10.7%
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-26.6%
|
|
Subprime
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30,750 30,264 21,869 19,505 21,138
|
8.4%
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-31.3%
|
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Other
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16,405 16,026 13,896 13,409 14,984
|
11.7%
|
-8.7%
|
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Total
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117,325 126,266 89,634 90,696 106,007
|
16.9%
|
-9.6%
|
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Number of Completed Foreclosures Relative to Mortgages in that Category
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|
Prime
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0.2% 0.2% 0.2% 0.2% 0.2%
|
25.2%
|
16.1%
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|
Alt-A
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0.8% 0.8% 0.5% 0.5% 0.6%
|
10.4%
|
-25.3%
|
|
Subprime
|
1.0% 1.0% 0.7% 0.7% 0.7%
|
9.9%
|
-25.3%
|
|
Other
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0.3% 0.3% 0.3% 0.3% 0.3%
|
19.0%
|
0.0%
|
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Total
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0.3% 0.4% 0.3% 0.3% 0.3%
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17.8%
|
-7.6%
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8554ce7b-27b0-4c63-96ea-7ab09ec6fd69|0|.0
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