Delinquencies highest since at least 1986: Things are bad in Florida, Ohio, Michigan, and Indiana

Posted by: Peter Coy on December 6, 2007

foreclosure1.jpg
The Mortgage Bankers Association said today that delinquencies in the third quarter were at their highest rate since it began surveying in 1986. It was 5.59% seasonally adjusted, up from 5.12% a quarter earlier and 4.68% a year earlier.

The percentage of loans in foreclosure and the percentage entering the foreclosure process also set records in the third quarter. The increases came in all types of loans, not just subprime, although of course the problem is worst in subprime. According to the MBA: “while subprime ARMs only represent 6.8 percent of the loans outstanding, they represent 43.0 percent of the foreclosures started during the third quarter.”

More than a quarter of loans entering foreclosure in the third quarter were in just four states: Florida, Ohio, Michigan and Indiana.

Reader Comments

Talula Ehm

December 12, 2007 4:01 PM

Foreclosures are sign of neglect and then there's other more reasons. Before you even get into this kind of trouble, you should know where you are buying, from whom are you buying. Be sure that the listing is credible. Some real estate agents could be really harsh

Post a comment

 

About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

BW Mall - Sponsored Links

Buy a link now!