No Real Estate Recover yet folks – and I really don’t see it coming anytime soon.

Inventories of bank-owned properties grew for the fifth month in a row, according to the latest statistics collected from loan servicers by Lender Processing Services.

“Real estate owned,” or REO inventory — properties repossessed by lenders — stood at 1.13 million, up less than 1 percent from April, but a 21.2 percent increase from a year ago, LPS said.

The latest LPS Mortgage Monitor report showed that the average number of days for a loan to move from 30 days delinquent to foreclosure sale continues to increase, to an all-time high of 449 days, meaning that many homes whose owners are newly delinquent won’t hit the market for a year or more.

The number of borrowers behind by one mortgage payment grew by 10.1 percent from April to May, to 1.62 million, down 6.4 percent from a year ago and off 9.3 percent from February, when 30-day delinquencies hit a peak for the year at 1.79 million.

Another 658,121 homeowners were 60 days behind on their payments in May, up 4.4 percent from April but down 12.5 percent from a year ago. This year’s peak in 60-day delinquencies was recorded in January, when LPS estimates 812,211 homeowners were two months behind on their payments.

I believe this trend is going to continue… until solid private company jobs show up. And from what I see, it isn’t anytime soon.

Tony Severino                                                                                                                                      www.CreativeInvestingTips.com

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