Author Topic: 11% of homeowners in mortgage trouble  (Read 302 times)

Bindare_Dundat

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11% of homeowners in mortgage trouble
« on: March 05, 2009, 07:47:57 AM »
More than 1.5 million homes are seriously delinquent and close to foreclosure

NEW YORK (CNNMoney.com) -- More than 11% of all Americans homeowners are either delinquent or in foreclosure, according to an industry report released Thursday.

The percentage of mortgage borrowers at least one month behind in their payments - but not in foreclosure - rose to nearly 8% during the fourth quarter of 2008, according to the National Delinquency Report from the Mortgage Brokers Association (MBA). That is the highest rate of delinquency ever recorded by the survey, which began in 1972, and reflects a record 13% jump compared to the third quarter.

"Subprime ARM loans and prime ARM loans, which include Alt-A and pay-option ARMs, continue to dominate the delinquency numbers," Jay Brinkman, chief economist for the MBA, said in a prepared statement. "Nationwide, 48% of subprime ARMs were at least one payment past due, and in Florida over 60% of subprime ARMs were at least one payment past due."

The number of homes in the foreclosure process rose to 3.3%, an increase of 0.33 percentage points from the quarter before and up 1.26 percentage points from a year earlier. That represents nearly 1.5 million homes at risk of sliding all the way through foreclosure.