One out of Ten Mortgage Payments Delayed

The Mortgage Bankers Association recently released a report showing that an estimated 1 out of 10 borrowers were behind their mortgage payments. Records show that 10.06 percent of all mortgage loans during the first quarter of the year were delinquent up from 9.12 percent a year ago.

This was reflected in all types of loans which posted an increase in delinquency rates compared to last year. The number of loan delinquencies has been growing steadily during the last few quarters inching ever closer to today’s 10.06 percent.

However, delayed payments for FHA loans improved to 13.15 percent, one of the few sectors were the rate of delinquencies posted a positive figure. The improved numbers are largely due to the changes undertaken after the losses incurred during 2007 and 2008 were most of FHA guaranteed loans started going bad.

Basically, there were no changes in the number of foreclosed homes from the previous quarter but was significantly higher than the number of repossessed loans the same quarter last year. The number of foreclosed homes stood at 4.63 percent way higher than last year’s 3.85 percent.

Other good news included a seasonal drop in the number of delinquencies during last year’s final quarter. Increased holiday spending and heating costs have traditionally caused homeowners to miss mortgage payments but surprisingly delinquencies went down a sign that the economy might be improving.

There is also fear that the number of foreclosures may see a rise this year as majority of homeowners who have applied for mortgage modification may have failed to qualify for permanent restructuring. Unless fundamental problems such as unemployment are addressed, foreclosures and delayed payments will continue to mar the housing market’s landscape.

Reported by REOProteams

For more information on the latest and hottest deals or how we at REOProteams.com could help you please email us at info@REOproteams.com or visit us at www.reoproteams.com or LVbargainproperties.com

Advertisement