Delinquent mortgages, foreclosures continue trending lower in Tri-Cities


By DON FENLEY

Two key housing market reports are showing continued improvement.

CoreLogic’s latest Foreclosure and Delinquent Mortgage reports show both were lower they were last year and despite some minor swings continue trending lower.

In the region’s largest market,  the percentage of mortgage loans 90 days or more delinquent in Kingsport-Bristol were 0.73% lower than October last year. The current rate is 3.01% of outstanding mortgages.

Delinquent mortgages in the Johnson City MSA accounted for 2.86% of that area’s mortgages – down 0.58% from last year.

Kingsport-Bristol’s Foreclosure Rate was down 0.16% on the year-to-year metric. The current rate is 0.72%.

Foreclosures in the Johnson City MSA were down 0.33% and accounted for 0.58% of the three-county area’s outstanding mortgages.

Delinquent mortgages in both MSAs peaked early 2010 then sharply declined until late summer the same year.  They drifted higher from that decline until early 2012 then began slowly trending lower.

Foreclosure rates began increasing with the Great Recession and peaked in both MSAs in last months of 2011. Despite some minor fluctuations they have decreased steadily since then. The pre-recession norm for foreclosures is half-a-percent of outstanding mortgages.

CoreLogic’s Delinquency Rate measures the percentage of loans that are more than 90 days delinquent, including those in foreclosure and REO (real estate owned).

The foreclosure rate measures the percentage of loans in some stage of the foreclosure process. A foreclosure is defined by the legal process by which an owner’s right to a property is terminated, usually due to default. It does not represent the number of new foreclosure filings.

 

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