Foreclosure Reported At Inflated Rates
The foreclosure rate reported by the US Mortgage Bankers Association are too scary. However, the situation is not that bad as it appears to be. That does not however mean foreclosure activities are negligible. Homes entering into foreclosure were the maximum in the last quarter of the year 2006. There are a couple of states that are adversely affected by the foreclosure situation. For example in Ohio, nearly 5.2% loans are either overdue for payment or perhaps entering into one or the other stage of foreclosure.
Indiana and Michigan are amongst the foreclosure leader nations. In Michigan, almost one in every 100 houses is facing the trouble of losing their home to foreclosure. The situation has been deplorable especially since the past three months. There are certain states where the rate of layoff is pretty high and to top it the offering of adjustable rate mortgages has made further contribution to enhance the number of foreclosures. If you look at the situation from a nationwide perspective, it will appear that the situation is not as worse as it sounds.
When there is a mortgage delinquency it tends to badly affect the people having outstanding loans. 1/3 homeowners have the ownership of debt free property. The remaining homeowners have active mortgages. In the recent survey, 44 million loans were examined, out of which prime loans account for 2.6%. Such loans are 1 month past due for payment. About 97.4% borrowers with good credit history are making their payments well on time.
There are many states where the rate of delinquency is quite less such as in Oregon the rate is only 1.35 percent. Similar situation prevails in Washington, California and Virginia. The rate of delinquency is 1.39% in Washington, 1.9% in California and 1.89% in Virginia. Borrowers who took prime credit loans at fixed rates are at a far better position than those with adjustable rates. Hardly 1 percent of prime loan borrowers in Washington, Hawaii, Oregon and California are making late payments.
People with sub prime loans are failing to make timely payments. Almost 14.5% homeowners with sub prime loans are lagging behind and facing the trouble of foreclosure. It is nearly 5 times greater than the delinquency rate amongst the prime borrowers. According to the recent survey, 85.5% of the sub prime homeowners are paying on time. Thus, it has been found that the numbers reported are more or less inflated and the foreclosure activities are not that high as they are reported.
Via
- Tough Laws Won’t Stop N.C. Foreclosure Rates Rising
- Foreclosure Reported At Inflated Rates
- Foreclosure Rate Shooting High in United States
- Smart Lending Required To Bring Down the Foreclosure Rate
- Hays Witnesses Drop in Foreclosure Rate
- Rate of Foreclosure Increasing At Rapid Pace
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