If you're not familar with LPS, you should be. LPS stands for Lender Processing Services. This company according to its website "is the nation's leading provider of mortgage processing services, settlement services, mortgage performance analytics and default solutions." In other words, these folks are a go to source for information about loans and lending in America, and what their data shows is troubling indeed.

Here are just a few  disconcerting facts from LPS's Mortgage Monitor for June: total mortgage delinquencies rose to 8.49% in May (a record), the year over year foreclosure increase as of May was 88.3%, Jumbo Prime, Option ARM , and Non-Agency conforming Prime loans continue to experience the highest defaults which have been accelerating the past six months, foreclosure starts in May 4.3% to the second highest level on record, and "almost no borrowes with credit scores below 620 are being awrded loans."

A few bright points were that: Iowa was one of the states with the lowest foreclosures starts, first payment defaults have fallen significantly, loan originations have been improving.

If what LPS says is true, continued deterioration in loans and rising foreclosures will keep a tight lid on home price appreciation in many markets across the US. This is bad news for sellers, but cause for optimism among sidelined buyers working on their credit who can expect to see deals continue for the near term.

We've heard a lot in the press about "signs" of a recovery and "signs" of a bottom in some arcane report or index. But from what LPS presents in its comprehensive review of US mortgages, the bloom will likely fall of the rose before the real recovery blosoms. But again, if you're a buyer in most parts of the country you can probably rest assured that there's still a deal out there for you.