Although the real estate market is improving, many borrowers are still falling behind on their mortgages, according to Lender Processing Services.
LPS' September Mortgage Monitor showed a 7.7 percent increase in the nation's delinquency rates, which was the largest monthly jump in four years. September usually sees a rise in delinquencies, but this was much greater than usual.
"September's increase in the delinquency rate was indeed significant, but the overall trend is still one of improvement," said LPS applied analytics senior vice president Herb Blecher. "Despite the monthly jump, delinquencies are down 30 percent from their January 2010 peak, and our analysis revealed some interesting factors related to the spike."
Additionally, originators saw a significant spike, jumping 13.2 percent compared to August and 42.1 percent on a year-over-year basis.
Despite the spike in the delinquency rate in September, CoreLogic reported a decline in completed foreclosures. The firm's National Foreclosure Report showed 57,000 foreclosures were finished in September, down from 59,000 in the previous month.
