The foreclosure rate of homes has dropped to the lowest level since the beginning of 2009 as homeowners in deep trouble on their mortgages are either getting their mortgages reworked with the banks, foreclosed upon, or participating in the federal programs.
The numbers are still extraordinarily high but the feeling that we have crested and have passed the worst is starting to take hold in the real estate community. Let’s hope so.
Households that are behind in their mortgage payments fell during the third quarter to 13.52 percent, from 14.42 percent in the second quarter, the Mortgage Bankers Association reported on Thursday.
It was the lowest delinquency rate since the beginning of 2009, just as the financial crisis began hitting home. The new data come amid stepped-up scrutiny of foreclosures by state and federal authorities, prompted by revelations that the banks have been pursuing them in ways that could violate the law.
One sobering statistic though is that 8.7 percent of all mortgages are seriously delinquent. That is 65 percent of the outstanding mortgages that are 3 or more months behind on their payments. So while the numbers are better, the systemic problems in the real estate industry still exist.
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Isn't this just a temporary dip due to the robo-signing disaster? I'lll bet the next report will be way up because they are catching up on the log jam.
A great article! It can be recalled that the foreclosure crisis started few years ago when people opted for high risk loans which they were unable to afford. Many also availed mortgage loans without submitting the required proof of income. However, recently, homeowners who have a good credit record and opted for fixed rate mortgages also faced the wrath of foreclosures. The fact that foreclosure rates have dropped is definitely a good news, but it has been reported at the same time that three to four years will be required to get rid of the delinquent loans.
Wow… actually a bit of good news! Hopefully we hit the upswing in 2011.
Any news is good news that the foreclosure rate appears to be leveling off or dropping, but I don't think we're going to be out of the woods anytime soon. The other nightmare that is becoming reality is the title search problem that has developed from the packaging and reselling of mortgage backed securities. This is going to be an extremely troublesome issue for title insurance companies being able to establish clear titles over the next decade and beyond. Title insurance has been traditionally a good business, but the upcoming wave of clouded titles could spell disaster for title insurers if this isn't somehow straightened out.
I expect that buyers and sellers will have trouble closing real estate transactions as well due to clouded titles from mortgage backed securities.
Good Day!
I would like to inquire about the rate of foreclosures since the beginning of 2010 and the annual foreclosure since 2008. this is part of our school assignment in one of our finance subject. I research in the Internet but I found no specific numbers. I just want a table or graph in this inquiries. if you could provide me with these information I would really appreciate it. Thank you and looking forward to your reply.
While it's great to see a drop in foreclosures, there are still many people facing chapter 7 bankruptcy and foreclosure. In many cases, they can contact loan modification attorneys to assist them in working out a loan modification.