Foreclosure rates in the Los Angeles area declined in April, following a nationwide trend that bodes well for the housing recovery.
Of all homes with an outstanding mortgage in the Los Angeles-Long Beach-Glendale market, 1.34% were in some stage of foreclosure, CoreLogic said Tuesday. That’s a decline from 2.55% in the same month last year.
The percentage of loans 90 days or more past due also dropped from 6.6% last year to 4.43% in April, the real estate data provider said.
Rising prices, driven by tight inventory, low mortgage rates and an improving economy are helping homeowners move from negative to positive equity. That makes it less likely they will walk away.
The Standard & Poor’s/Case-Shiller index of home prices in 20 large cities rose 2.5% in April from March and 12.1% over the last year.
Foreclosures are also declining nationwide, data show.
Mortgage and consumer loan processing firm Lender Processing Services said Tuesday that the nation’s foreclosure inventory and delinquency rate dropped in May.