Number of Overdue Mortgages Falls in Q1 - |

Armando Montelongo Team Blog

Mortgage Delinquency Rates Drop in First Quarter

Mortgage delinquency rates declined to levels not seen since 2007-08 in the first quarter, according to a new report.

The Mortgage Bankers Association reported that 7.40 percent of all mortgages were considered delinquent – at least one payment behind, but not yet in foreclosure – in the first three months of 2012. That was down from 7.58 percent in the fourth quarter of 2011 and 8.32 percent in the first quarter of 2011.

An additional 4.39 percent of loans were in the foreclosure process at the end of the first quarter, up from 4.38 percent in the fourth quarter and down from 4.52 percent in the first quarter of 2011.

The percentage of loans in the foreclosure process in states where the courts are involved in the process – referred to as the “judicial” states – reached a record high in the quarter, at 6.9 percent.

In non-judicial states, the rate is 2.8 percent, the lowest level since 2009.

The Calculated Risk blog noted that two of the hardest-hit states for foreclosures, California and Arizona, are below the national average.

In California, the rate is 3.29 percent, and in Arizona it is 3.57 percent.

The states with the largest percentages of foreclosures in the first quarter:

  • Florida, 14.31 percent
  • New Jersey, 8.37 percent
  • Illinois, 7.46 percent
  • Nevada, 6.47 percent (only non-judicial state in top 10)
  • New York, 6.17 percent

Loans 30 days overdue were 3.13 percent of all loans, a level not seen since 2007. Loans more than 90 days overdue were 3.06 percent of the total, the lowest level since 2008.

What do you think? Is this a positive trend? What  are conditions like in your area? Let us know: