Atlanta Real Estate Blog

Mortgage Delinquencies Rise in 3Q 2008

A survey showed that one in 10 American households with mortgages is overdue on payments or in foreclosure, adding pressure on Washington to provide more relief to distressed borrowers.

 

The Mortgage Bankers Association  said its latest survey, released Friday, showed that 10% of mortgages on one- to four-family homes were at least a month overdue or in the foreclosure process in the third quarter.  That is up from 9.2% three months earlier and up 7.3% a year ago.  The current level is the highest since the trade group began such surveys four decades ago. 

For prime loans, 5.9% of loans were past due or in foreclosure in the latest quarter. 

For subprime loans (those for people with weak credit records or high debts in relation to income), the rate was about 33%. 

The recent surge in unemployment is likely to push foreclosure and delinquency rates higher in 2009, said Jay Brinkmann, chief economist of the association.  "We have not gone into past recessions with the housing market as weak as it is now," he said.

 

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Lee Marlin

Certified Short Sale and REO Specialist

http://ATLShortSales.com

AtlantaShortSales at gmail.com

 

Tags: Mortgage Bankers Association, foreclosure, prime loans, subprime loans, refinance, delinquency rates, unemployment, recession, foreclosure starts, delinquent loans, foreclosure inventory, VA loans, FHA