Where Do We Stand With Foreclosures and Are They Slowing Down at All?

Where Do We Stand With Foreclosures and Are They Slowing Down at All?

We are two months into the New Year and foreclosures are nevertheless a hot news subject. So let’s take a look at how and where we are currently. According to Lender Processing sets (LPS) their data indicates about 6.92 million residential mortgage are past due or currently in foreclosure as of the end of January, 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 by the end of the year because of the foreclosure fraud investigation. LPS also says the number of loans currently have rose 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 time of action 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 nevertheless have the highest non-current loans? Florida, Nevada, Mississippi, Georgia and New Jersey nevertheless 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 the minimum one month behind.

Jobs are nevertheless 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 crawl up again. Question is how the government’s assistance program, HAMP and other loan alteration programs continue to help struggling homeowners. Increase discussion about the revamping of the mortgage, lending sets and other government agencies will certainly play a role into how our real estate market starts to retrieve 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.

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