Check out this chart that accompanies the story below for mortgage delinquency and foreclosure statistics for every state.
In Illinois there are 1.67 million mortgages listed with 5.09% past due and 1.05% more than 90 days so.
From USA Today:
With a warning that the worst is yet to come, the Mortgage Bankers Association said Thursday that lenders began foreclosure proceedings on a record number of homes this spring.
The turmoil in the mortgage market poses multiple threats, the MBA says. Foreclosures are likely to rise for at least another year. A bigger supply of homes in foreclosure would weaken prices in many areas. And people behind on loans will find it harder to refinance.
For all loan types, 5% of borrowers — nearly 2.5 million people — missed at least one payment last quarter. That's up from 4.4% in the same period last year.
The problems appear to be focused in seven states. Job losses in Michigan, Ohio and Indiana have depressed housing there. Those three states account for nearly 20% of the nation's homes in foreclosure.
And a rising number of defaults in four states — California, Nevada, Florida and Arizona — is largely why the U.S. delinquency rate is up. As home prices there fall, more people are in the upside-down position of owing more on their loans than their homes are worth.
California accounted for more than 17% of the subprime ARMs in the country and for more than 19% of the new foreclosures in the second quarter, the MBA says.
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5 comments:
Once again we're hearing more bad news.These are sad numbers.''2.5
million missed at least 1 payment
last quarter'' that effects the ability to refinance as well as the interest rate when they apply.
The Semptember issue of Fortune has a fantastic article''Oh,the people you'll blame'' Finally
someone brings to light who is to blame for the mortgage mess----
EVERYONE INVOLVED
The words "Record Numbers" are what should be emphasized. The current housing 'crisis' is certainly a problem and a result of an overachieving economy coming back to earth.
The government has stepped in to bail out certain households from this mess, but what about the lenders who have been basically engaging in predatory lending? According to a report I read dated back in March, (http://www.npr.org/templates/story/story.php?storyId=9096735), Freddie Mac is saying that 10% of all subprime borrowers could have qualified for a prime loan. With lenders tightening their standards (for now anyway), will the government still step in and provide more "guidance" as far as ARMs go? Really, though, it would just make more sense for lenders to write loans for people who can afford them, both now and later. Of course it would also make sense for people to try harder to live more frugally.
Thanks for the article link, Jessica. I enjoyed reading it. Hopefully, lenders and borrowers will make better choices going forward.
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