Mortgage Delinquencies Stuck in Holding Pattern
Mortgage loan delinquencies peaked at 8.25 percent in January 2010, according to Housingwire.com, then dropped 25 percent to 7.72 percent during 2011 ─ a small but positive improvement.
However, Lender Processing Services (LPS), a Jacksonville-based technology company that monitors nearly 40 million U.S. mortgage loans, noted a 2.3 percent uptick in delinquencies in November 2011 after months of decline – bringing the rate to 8.15 percent.
Despite this change, the percentage of U.S. mortgages overdue three months or more remained largely unchanged for the past six months, closing the year flat overall, according to Lpscvs.com.
“This degree of stagnation indicates that while the situation is not getting markedly worse, it is not improving either, and inventories of troubled loans remain significantly higher than pre-crisis levels across the board,” said LPS in a prepared statement reported on Housingwire.com.
Millions of Homeowners Still Delinquent
Recent figures on mortgage delinquency, according to Bizjournal.com, show the following:
- Total loan delinquency in the U.S. remains at 8.15 percent
- In late 2011, 6.26 million homes were in foreclosure or delinquent – 4.17 million at least 30 days past due and 1.81 million 90 or more days past due
- For the 59th straight month, Nevada had the highest foreclosure rate
- California, Florida, Mississippi, Michigan, Illinois, Georgia and New Jersey also lead the nation in mortgage delinquency
- Problem mortgage levels – loans six or more months in arrears – generally held steady for the year
Freddie Mac and Fannie Mae Cut Foreclosure Rates
While delinquency rates held steady, government-sponsored mortgage giants Fannie Mae and Freddie Mac significantly decreased foreclosure starts on 90-day past due mortgage holders in late 2011. Whether it represents a cautious reaction to the banking industry’s sloppy home-seizure debacle or merely a holiday season slow-down, foreclosures are expected to rise again before the crisis runs its course, according to an article in the Miamiherald.com.
If you are facing bankruptcy and the loss of your home, consult an experienced bankruptcy attorney to discuss your situation and determine your next steps.