Dennis Norman
By: Dennis Norman
According to a report issued by the Center for Responsible lending, the number of homes that have had foreclosure proceedings begun on this year broke the 1 million mark this past weekend. The Center for Responsible lending website has a rather depressing “foreclosure meter” that shows, in real time (sort of), the number of foreclosure starts since January 1, 2009. At the time I am writing this it shows 1,010,866.
In a related report, last week the Mortgage Bankers Association released their report on mortgage foreclosures and delinquencies for the 1st quarter of 2009 showing foreclosure starts were initiated on 1.37% of first mortgages which is over a 26% increase from the 4th quarter 2008 rate of 1.08% and a 36% increase from the rate of 1.01% a year ago. According to the report both the level of foreclosures as well as the increase in foreclosure rate from the prior quarter are record highs.
The other disturbing information in the report was that, according to the Mortgage Bankers Association, 12% of all home mortgages were delinquent in the 1st quarter of 2009 (including the ones in foreclosure). This is a record high since the Mortgage Bankers Association began its delinquency survey.
Not very encourgaging news. As I have said on several recent posts about the real estate market, I feel it is maybe nearing the bottom. However, seeing the foreclosure and delinquency rates in these reports really disturbs me. Not only do we have a record number of people and families losing their homes, the impact of foreclosures on real estate values is generally negative…therefore the “bottom” of the market we are seeing may very well be a “false bottom”. I think the true bottom is going come aftger we see the foreclosure and delinquency rates return to something closer to normal.
Related posts:
- Mortgage loan delinquency hits 2 year low; foreclose rate ties highest on record
- Mortgage delinquencies set new record in third quarter
- Foreclosures in July are 4th highest on record; delinquencies continue to decline
- Foreclosures remain at near record levels in August
- Foreclosures on the rise in November however mortgage delinquences decline