Federal Reserve Bank of New York: "These charts and maps are designed to inform policymakers and the public at large about the current status and possible future course of the distressed real estate situation. At the national level, the percent of 1-to-4 family mortgage loans in serious delinquency (90+ days) has declined to about 3 percent of all first mortgage loans as of the second quarter of 2012, down from a peak of 5 percent in the first quarter of 2010. But this does not necessarily mean that the worst of the distressed residential real estate problem is behind us. Indeed, the inventory of properties owned by lendersóreferred to as real estate owned, or REOócould rise rapidly in many states through the end of 2013. While this depends on many factors, the number of days it takes to complete the foreclosure process is critical in influencing this inventory level. On average, that length of time has risen substantially in recent years, but whether it continues to rise, stabilizes, or declines will have a major impact on the the change in these REO inventories."