The continued decline of completed foreclosures proves that the economy continues to mend itself after the recent recession. In just the last year since July 2014, the number of completed foreclosures has decreased by 24.4 percent, and the national foreclosure inventory itself has dropped 27.9 percent. These figures translate into just over 38,000 homes lost to complete foreclosure in July 2015, down from the more than 50,000 homes lost to complete foreclosure in July 2014. These numbers are sharply lower, however, than the 117,225 homes completely foreclosed on in September 2010, the highest number of complete foreclosures since the recession began in 2008.
From September 2008, the time that economists mark as the beginning of the worst of the recession, to now, more than 5.8 million homes have been lost to complete foreclosure. Since 2004 when the economy began declining, more than 7.8 million homes have been foreclosed on by lenders. However, as the economy improves the number of homes with delinquent mortgages that are more than 90 days past due has dropped by 23 percent in the last year. This figure accounts for a mere 3.4 percent of all mortgages, or roughly 1.3 million homes.
Economic insiders note that this improvement in homeownership retention stems from the lowering unemployment rates, the stabilization and appreciation of home prices, and job market gains. People’s incomes are likewise growing, allowing them to care for their families and meet necessary expenses like mortgage payments without experiencing the financial crunch that could lead to foreclosure.
