BAP Blog Homeowners at Risk of Foreclosure is Increasing

The latest report states that the number of Americans at risk of foreclosure is rising. This news is reflecting the U.S. economy's continued struggles. On Monday the Mortgage Bankers Association reported that 8.44 percent of homeowners missed at least one mortgage payment in the April-June quarter. That figure, which is adjusted for seasonal factors, rose 0.12 percentage point from the January-March period. In a normal market, the percentage of delinquent borrowers is about 1.1 percent according to the trade group report. It was also reported that delinquent mortgages have plummeted from a record high of more than 10 percent of residential mortgages a year ago. This decline is due partly to delays in foreclosure filings that are backlogged in several state courts, including Florida, New Jersey, Illinois and New York. With the end of a state and federal investigation into faulty foreclosure paperwork it will likely lead to increased foreclosures later this year. Analysts also say that the increase is especially worrisome because it's due mainly to high unemployment, which tends to raise the number of missed payments and foreclosures over time. And once delayed foreclosures are re-started, the economy could suffer a hit. The quarterly survey covers nearly 88 percent of primary residential mortgages totaling nearly 44 million loans.