More Than 11 Percent of Mortgages Delinquent or in Foreclosure
The number of homeowners falling behind on their mortgages or already in foreclosure surged to record highs during the fourth quarter, according to industry data released today.
About 7.88 percent of mortgage loans were delinquent during the quarter, according to the survey by the Mortgage Bankers Association, an industry group. It is up from 5.82 percent during the same period a year earlier. Another 3.3 percent were in the foreclosure process, up from 2.04 percent a year ago. Both figures set records. Taken together, they mean that more than 11 percent of home mortgages are now in some form of distress. The association began keeping records in 1972.
The trend highlights the challenge facing the Obama administration as it launches a foreclosure prevention program that will pay incentives to lenders to encourage them to lower homeowners’ payments to affordable levels. The administration aims to help up to 9 million homeowners either refinance their mortgages or attain a loan modification that keeps them out of foreclosure.
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