Where do we stand with foreclosures and are they slowing down at all?
We are two months into the new year and foreclosures are still a hot news subject. So let’s take a look at how and where we are.
According to Lender Processing Services (LPS) their data indicates about 6.92 million residential mortgages are past due or currently in foreclosure as of the end of January. That is a slight increase from December of 6.87 million. Most likely we are seeing the increase of homes going into foreclosure due to the fact many lenders held off foreclosure through the end of the year because of the foreclosure fraud investigation.
LPS also says the number of loans have risen 8 percent higher from where we were last year. Out of the 6.92 million mortgages not being paid on in the US, about 2.20 million are already in the process of being foreclosed on. About 4.72 million are more than one month past due, while 2.16 million of these homes are about 90 days past due.
So which states still have the highest non-current loans? Florida, Nevada, Mississippi, Georgia and New Jersey still have high foreclosure rates. However, these states are the fewest foreclosure rates Montana, Wyoming, Arkansas, South Dakota, and North Dakota.
According to MBA every state but two saw a drop in the 90 day past due delinquency, North Dakota and Arkansas were the only two states in which 90 day delinquencies did not decline. Total US mortgages that are past due are estimated to be around 8.22 percent, these not including mortgage that are already in foreclosure. MBA numbers for homes that are already in foreclosure averages about 4.63 percent. However according to MBA reports about 13.56 percent are at least one month behind.
Jobs are still slowly on the rise, commodities like gas, oil and food costs are pushing the average American’s budget to the verge of popping and it is only a matter of time before we start seeing foreclosures slowly creep up again.
Question is how the government’s assistance program, HAMP and other loan modification programs continue to help struggling homeowners. Increase discussion about the revamping of the mortgage, lending services and other government agencies will certainly play a role into how our real estate market starts to recover and how soon. As government officials continue to discuss making changes, we can only sit back and see how the next year begins to unfold.