Thursday, July 8, 2010

More Than 12 Percent of Mortgages Nationwide Delinquent or in Foreclosure

I’ll keep this particular piece of bad news relatively short: Lender Processing Services reports that mortgage delinquencies were up fairly substantially last week. Mortgage delinquencies in May increased to 9.2 percent, up 2.3 percent from the April. This is also a 7.9 percent increase from the previous year.

Going a little further, the nationwide foreclosure rate is 3.2 percent, meaning that more than 12 percent of mortgages are delinquent or in foreclosure. Florida and Nevada lead the nation in non-current mortgage loans, with 22.4 percent and 21.8 percent respectively.

Additionally, the number of delinquent loans that are “cured” (become current) is declining, meaning that fewer and fewer people who become delinquent on their mortgages are able to catch up on payments.

None of this bodes particularly well for the future of the economy or the housing market. Further home price declines could certainly contribute to additional foreclosures.

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