On March 5, 2009 the Mortgage Bankers Association (MBA) released the results of its 4th Quarter 2009 delinquency survey (Delinquency Survey).
Overall delinquency and foreclosure rates reached a seasonably adjusted record high since the MBA commenced keeping records in 1972. Following is a summary by loan category.
|
Loan Category
|
Delinquency Rate
|
Foreclosure Rate
|
Total
|
| Prime |
5.06%
|
1.88%
|
6.94%
|
| Sub-Prime |
21.88%
|
13.71%
|
35.59%
|
| FHA |
13.73%
|
2.43%
|
16.16%
|
| VA |
7.52%
|
1.66%
|
9.18%
|
| Overall |
7.88%
|
3.30%
|
11.18%
|
The article also mentions that percentage of loans more than 89 days “past due jumped sharply in the fourth quarter”. Servicers would have normally commenced foreclosure proceedings on these loans. However because of attempts to modify loans, investors’ guidelines, and delays in various locales foreclosure proceedings have been postponed.
The article expects the cause of delinquency to shift away from arm resets or other underwriting criteria to other causes more directly tied to the economy.
Ed Note: Delinquencies and foreclosures continue to present a significant challenge to our economy. The delay in processing foreclosures will likely result in a further increase in lender owned properties in the near future. However, for homeowners struggling with their mortgages, significant assistance is available to either refinance, modify or short sell their home. Foreclosure is the least desirable option. For more information contact us at 888.706.5389 or mail@jpscvrealty.com.