The Real Estate Bloggers

Foreclosure Rate Drops To Lowest Level In Nearly 2 Years

Posted: 19 Nov 2010 02:50 AM PST

Foreclosure2 The foreclosure rate of homes has dropped to the lowest level since the beginning of 2009 as homeowners in deep trouble on their mortgages are either getting their mortgages reworked with the banks, foreclosed upon, or participating in the federal programs.

The numbers are still extraordinarily high but the feeling that we have crested and have passed the worst is starting to take hold in the real estate community. Let’s hope so.

Households that are behind in their mortgage payments fell during the third quarter to 13.52 percent, from 14.42 percent in the second quarter, the Mortgage Bankers Association reported on Thursday.

It was the lowest delinquency rate since the beginning of 2009, just as the financial crisis began hitting home. The new data come amid stepped-up scrutiny of foreclosures by state and federal authorities, prompted by revelations that the banks have been pursuing them in ways that could violate the law.

One sobering statistic though is that 8.7 percent of all mortgages are seriously delinquent. That is 65 percent of the outstanding mortgages that are 3 or more months behind on their payments. So while the numbers are better, the systemic problems in the real estate industry still exist.

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Foreclosure Rate Drops To Lowest Level In Nearly 2 Years