Delinquencies and foreclosure rates dropped in May, partially reversing the sudden increase in April, according to Black Knight Financial Services’ First Look report.
After rising 13% in April, the largest monthly increase since November 2008, delinquencies saw a partial reversal in May with a drop of 7%.
The inventory of loans that are either seriously delinquent, 90 days or more past due or in active foreclosure continued to improve, hitting a 10-year low in May. The number of loans in foreclosure hit 421,000 in May, a drop of 12,000 loans from April and 153,000 loans from last year.
However, foreclosure starts increased slightly by 55,800 loans, up 5.7% from April. However, this is the second-lowest number of monthly starts since 2005.
Here are the five states with the lowest percentage of non-current loans, the combined foreclosures and delinquencies as a percentage of active loans in the state:
- Colorado: 2.12%
- North Dakota: 2.26%
- Minnesota: 2.51%
- Idaho: 2.69%
- Oregon: 2.7%
And here are the states where homeowners struggle the most to keep up with their mortgage payment and hold the highest non-current percentage:
- Maine: 6.6%
- West Virginia: 6.83%
- Alabama: 7.13%
- Louisiana: 8.68%
- Mississippi: 10.16%
In a separate announcement, D.R. Horton said Thursday that it still believes its offer is superior and suggests that a partnership with Forestar will allow Forestar to grow into a “leading publicly traded national land developer.”
In a statement, Donald Horton, D.R. Horton’s chairman of the board, said that the deal would present a “significant growth opportunity” for both companies.
“We are confident that our proposal is superior to the amended agreement with Starwood and remain fully committed to closing a Forestar transaction in the best interests of both companies’ shareholders,” Horton said.
“We have completed our due diligence and have submitted a fully negotiated Merger Agreement, Master Supply Agreement and Stockholder Agreement to the Forestar Board of Directors,” Horton continued. “We urge the Forestar Board to formally declare our proposal to be a ‘Superior Proposal,’ and to proceed to a definitive agreement with D.R. Horton and postpone the shareholder meeting scheduled for July 7, 2017.”
In its release, Forestar cautioned that there is no assurance that either deal will be completed.