Almost 7% of Homeowners Face Foreclosure with Delinquent Home Loans
by admin ~ December 6th, 2008.According to a recent report, almost 7% of U.S. homeowners were at least one payment late on their mortgages at the end of the 3rdquarter, an industry trade group said. The Mortgage Bankers Association said 6.99% of one-to-four unit mortgage loans, not including homes involved in foreclosure, were delinquent in the quarter. Foreclosure proceedings were started on 1.07% of home loans during the quarter, although the figures changed depending on the type of mortgage loan. Home loan modifications are helping mitigate foreclosures but clearly this is a driving force in the financial crisis. Apparently second mortgage foreclosures are even higher than first mortgages. The FDIC and many mortgage lenders are focusing their attention on foreclosure prevention remedies through loan modifications, short sales and forbearance
For prime loans at fixed rates, 0.34 % entered foreclosure proceedings in the quarter. For bad credit mortgage loans with adjustable rates, often cited as the catalyst to the financial crisis, 6.47 % of the loans entered foreclosure proceedings. Nevada, Florida, Arizona, California, Michigan, Rhode Island, Illinois, Indiana and Ohio had more foreclosure starts than the national average, the report said. “While 20 states showed declines in the rate of foreclosure starts between the second and third quarters, every state showed an increase in the 90 days or more delinquent category with the exception of Alaska and all of the increases were greater than what we would expect due to normal seasonal factors,” MBA Chief Economist Jay Brinkman said.
Category: Featured Articles, Foreclosure news | Tags: forbearance, loan modification, second mortgage, short sale