Home Loan Delinquency Rate Reaches All Time High

by admin ~ August 17th, 2009.

The delinquency rate on U.S. home loans reached an all-time high in the second quarter, but the pace of growth for the rate slowed, a possible sign the mortgage crisis may be beginning to turn the corner.  Data provided by credit reporting agency Trans Union shows the ratio of mortgage holders who are 60 days or more behind on their payments increased for the 10th straight quarter, to 5.81% nationwide for the three months ended June 30th.  That’s up 65%, from 3.53%, in the 2008 second quarter.  A loan delinquency of 60 days is considered a precursor to foreclosure, because of the difficulty homeowners would have coming up with two back payments to bring themselves current.

While the delinquency rate hit a new high, however, the increase from the 1st quarter to the 2nd was 11.3%. In the two prior quarters, the delinquency rate spiked almost 16%.  That slowdown may be a good sign, said FJ Guarrera, vice president of Trans Union’s financial services division. “We have reason to be cautiously optimistic,” he said.  While there’s no way to know exactly why the pace of growth is slowing, Guarrera said, it appears that loan modification programs aimed at helping distressed homeowners from both the FHA mortgage and conventional lenders are beginning to help. In addition, he said, consumers are being more careful with their spending. 

For the second quarter, Nevada, Florida, Arizona and California remained the four states with the highest delinquency rates, mirroring the locations where foreclosures are the highest. Nevada’s delinquency rate spiked to 13.8, from 11.6% in the first quarter and 6.63% in the 2008 second quarter.  In Florida, the delinquency rate rose to 12.3%, from 11% in the first quarter, and 6.47% in the 2008 second quarter.  Trans Union culls its database of 27 million consumer records to produce the statistics.  Read the complete article online > Mortgage Delinquency Rate Climbs to All Time High.

Category: Foreclosure news, Mortgage News, Published Loan Relief Articles, foreclosure prevention | Tags: , , ,

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