Mortgage Delinquencies Up In Second Quarter

Mortgage Delinquencies Up In Second Quarter

Mortgage Delinquencies Up In Second Quarter

Home loans with at least one missed payment but not yet in foreclosure rose to 7.58% in the second quarter from 7.4%

Didn’t we hear just the other week from CAR, NAR and major media that the real estate market cleared the hump? The banks continued to clear away those pesky robo signed foreclosures. Buyers can be seen en masse at practically every Bay Area property for sale. But it looks like this new and improved housing market hit a pot hole last quarter.

According to the Mortgage Bankers Association., home loans with at least one missed payment but not yet in foreclosure increased in the second quarter to 7.58% of all mortgages. That’s up slightly from 7.4% in the first quarter. People continue to miss payment because the high unemployment numbers cause this ripple effect.

In related numbers, RealtyTrac said the number of homes going into foreclosure rose 6% in July compared with a year earlier, the third straight month of year-over-year increases.

The delinquency increase should continue to hamper the real estate market as many unemployed or underemployed struggle to keep up their mortgage payments. Even those who maintain jobs have seen their overtime and bonuses cut which affects their ability to pay their mortgages.

On the brighter side, the percentage of loans in all stages of the foreclosure process, dropped to 7.31% in the second quarter from 7.44% in the first quarter and 7.85% a year earlier.

California foreclosure number look brighter

Nationwide, 4.27% of all home loans sat in the foreclosure process at the end of the second quarter. Here in California, the number of residential mortgages in foreclosure came in at only 3.1%.

California may be fortunate in some respects. The unemployment crisis appears to be less in the Bay Area with the high techs and start ups fueling much of the employment in this region. Also home prices here continue to rise in many Bay Area markets which allows many struggling homeowners to either sell or short sell their home rather than have it taken by the bank in foreclosure.

Mortgage Delinquencies Up In Second Quarter

Mortgage Delinquencies Up In Second Quarter

Mortgage Delinquencies Up In Second Quarter

Mortgage Delinquencies Up In Second Quarter

Mortgage Delinquencies Up In Second Quarter

Mortgage Delinquencies Up In Second Quarter

Mortgage Delinquencies Up In Second Quarter

Mortgage Delinquencies Up In Second Quarter

Mortgage Delinquencies Up In Second Quarter

Mortgage Delinquencies Up In Second Quarter

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Filed under Banks, California, Foreclosure, Mortgages, pre-foreclosure

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