ML-Implode News - Foreclosures Show No Sign of Decline

At the end of March, 11.8% of all loans were at least 30 days past due or in foreclosure, the report from the Mortgage Bankers Association said. While that is still high by historical standards, it has improved steadily over the past two years, falling from 12.8% a year ago and 14.7% two years ago.
The decline in the share of homeowners late on payments was due almost entirely to fewer new cases of delinquency, a sign that households' finances are improving. The percentage of borrowers behind on their mortgage but not in foreclosure fell to 7.4% at the end of March from 8.3% a year earlier.
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Foreclosures... remain a concern. Although banks initiated fewer foreclosures in the first quarter than at any time since 2007, the share of loans in the process remains high.
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The numbers mask big variations by state. The national foreclosure rate remains elevated largely because of states that require banks to process foreclosures through the courts. In these so-called judicial states, banks have moved to take back homes very slowly since judges uncovered record-keeping abuses in foreclosure processing 18 months ago. Banks have encountered fewer hurdles in nonjudicial states.

... communities with a large "shadow" inventory of potential foreclosures could face renewed price pressure once banks take back and list for sale more of those properties... in those states, investors have grown more confident that more foreclosures won't be dumped on the market...

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Foreclosures Show No Sign of Decline