Mortgage delinquencies are continuing to rise

Growing unemployment continues to drive U.S. homeowners to record high mortgage delinquencies and foreclosures. Over the past year, some 5.5 million individuals in the U.S. have become unemployed, driving the unemployment rate to 10.2%, the highest in more than twenty-five years.

According to the November Delinquency report issued by Mortgage Bankers Association (MBA) nearly one in every 10 homeowners (a total of approximately 4.5 million borrowers), was at least one payment behind on their mortgage in the third quarter. In Florida one in four or 25% of homeowners have fallen behind on their payments and in Nevada, 23% of homeowners are delinquent. At a seasonally adjusted rate of 9.64% of all loans, this represents a record high since 1972, the year MBA began tracking statistics related to delinquencies. Combined with those homeowners already in some stage of foreclosure, an astounding 14.41% of homeowners are delinquent or in foreclosure.

While the real estate market showed slight signs of improvement and stability in recent months, record high delinquency rates signal that the foreclosure market has not yet reached bottom. Forecasters anticipate that anywhere from 5 to 7 million additional properties will be foreclosed on during the next twelve to fourteen months and that the real estate market in the U.S. will not fully begin to rebound until 2011.

While the HAMP (Home Affordable Modification Program) may help some, the majority of these individuals will reach foreclosure costing them the ‘American Dream’ and costing banks and lending institutions millions in administration and disposition costs. What can we do now to minimize the risk and assist these individuals; working to prevent foreclosure through either a short sale or bank driven loan modification program? Instead of sitting back and waiting for the inevitable banks and lending institutions need to continuously assess their portfolios and work with individuals to prevent foreclosure.

If your savings are being thrown into the black hole of your existing mortgage and you see the value of homes in your neighborhood dropping you may well qualify for a loan modification or short sale to help you stave off foreclosure.

Call me for a confidential meeting to discuss the options that are available to you before it’s too late.

Vanessa Saunders, MBA, MIMC

Certified Distressed Property Specialist

845 598 5083