LPS: Delinquency Rate Spikes

By
Real Estate Agent with SANDALS REALTY GROUP, INC

 

LPS: Delinquency Rate Spikes

 

Lender Processing Services (LPS) reported a spike in delinquency rates in the month of September, compared to August, which means even more foreclosures are likely to stack up on top of the shadow inventory. For those who think the REO bubble has burst, this should be a wake up call. It's not even close to being over. In fact, some banks are holding back up to 90% of their REO inventory. These foreclosed homes don't just disappear. They need to be sold!

As of September, there are over 5.5 Million homes that are delinquent or in foreclosure. The states with the most delinquencies are Florida, Mississippi, New Jersey, Nevada, California, and Texas.

Comments (1)

Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

More delinquencies might indicate that we will might see more shortsale listings flood the market before the end of the year. Many homeowners are afraid that the forgiveness debt relief act might not be extended beyond 2012.

Oct 27, 2012 06:28 AM