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Daily Real Estate News | September 7, 2007
Foreclosures Hit All-Time Highs
The percentage of home owners receiving foreclosure notices hit record highs in the second quarter, reaching 0.65 percent, up from 0.58 percent in the first quarter, according to the Mortgage Bankers Association data released Thursday.
The largest number of foreclosures and delinquencies have occurred in subprime mortgages, but data released this week indicates the problem is now spreading to other types of mortgages, the bankers say.
The MBA survey found that the delinquency rate, which tracks the number of people who are behind in their payments but have not yet entered the foreclosure process, was also up sharply during the spring. It rose to 5.12 percent of all loans, the highest level in five years, and up from 4.84 percent in the first quarter.
Doug Duncan, the MBA's chief economist, says the worsening performance was the result of two major factors — heavy job losses in the Midwest states of Ohio, Michigan, and Indiana, a region hard hit by heavy losses in the auto industry and other manufacturing industries. He also blamed the collapse on previously booming housing markets in California, Florida, Nevada, and Arizona.
"The percent of mortgages in Ohio that are 90 days or more past due or in foreclosure is still more than twice the national average," Duncan says. "And 1 percent of all the mortgages in Michigan had foreclosure actions started on them during the last quarter."
Source: The Associated Press, Martin Crutsinger (09/06/07)
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