The nationwide foreclosure problem is getting worse than ever, according to the latest figures from the Mortgage Bankers Association
In this week’s report, the organization states that 12.07 percent of U.S. home loans are now either in the foreclosure process or at least one payment past due, which is said to be the highest level ever recorded.
"The increase in the foreclosure number is sobering but not unexpected. The rate of foreclosure starts remained essentially flat for the last three quarters of 2008 and we suspected that the numbers were artificially low due to various state and local moratoria," said MBA chief economist Jay Brinkmann.
Brinkmann also pointed out that the foreclosure problem has shifted somewhat from subprime mortgage loans to prime fixed-rate loans. This indicates that instead of irresponsible lending practices clouding the housing market, personal finance problems brought on by high unemployment are doing so instead.
The high number of foreclosures has also been holding down home prices nationwide, which has at least had the effect of contributing to higher real estate sales in some markets. The MBA reports that foreclosures remain particularly high in California, Florida, Arizona and Nevada, states that have consistently led the way in such figures throughout the recession.
Published by NASDAQ