Lender Processing Services (LPS), the largest mortgage servicer in the United States, recently released its “Mortgage Monitor,” a comprehensive study of the status of U.S. mortgages/foreclosures. The study found the national average of delinquent mortgages at about 12.45%. In other words, nearly 4.1 Million loans are either delinquent or currently in foreclosure. The research further shows that the average loan in foreclosure is delinquent 599 days, which is more than double that of 2008. It comes as no surprise, then, that over 40% of loans in foreclosure have not paid in excess of one year. These numbers are dismal and suggest that recovery is lagging, even against some of the most pessimistic projections.
LPS’ study also showed that, not surprisingly, foreclosures in non-judicial foreclosure states like Nevada are complete in nearly 1/3 of the time as judicial foreclosure states. The difference between the two is paramount as foreclosures in non-judicial states, like Nevada, are not processed through the courts, and, thus, are subject to higher risk of errors or improprieties.