Industry NewsMortgage

Delinquencies, foreclosures hit new highs

More than 11% of loans were late or in foreclosure during Q4

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More than one in 10 homes with mortgages were behind on their payments or in foreclosure in the fourth quarter of 2008 -- the highest proportion in records dating back to 1972, the Mortgage Bankers Association said today. About 7.88 percent of all mortgages outstanding on one- to four-unit residential properties were at least one payment past due during the fourth quarter, and another 3.3 percent were in foreclosure. The combined delinquency and foreclosure rate of 11.18 percent was a record, as were the percentage of loans 60 days or 90 days or more past due. While the rate of new foreclosures remained essentially flat for the last three quarters of 2008, foreclosure inventory and the percentage of loans 90 days or more past due jumped sharply in the fourth quarter. State and local moratoriums on foreclosure sales, Fannie Mae and Freddie Mac's decision to halt foreclosure sales in November, an overburdened legal process, and "a general reluctance by servicers to pr...