The number of option-ARM foreclosures rose 23% in the past six months to hit 18.8%, a level higher than subprimes ever reached, according to Lender Processing Services. LPS also reported that in February the U.S. loan delinquency rate stood at 8.8%, while the overall foreclosure inventory was 4.15%. It said foreclosure inventory levels were more than 30 times greater than monthly foreclosure sales volume, indicating a backlog will exist for some time to come.

Click here to read the release from Lender Processing Services.