Florida leads the nation in foreclosure
Nov. 19, 2009
Florida topped the nation in the percent of home loans in foreclosure for the third quarter of this year with banks taking back 12.74 percent of the state's mortgages.
The data, released this morning by the Mortgage Bankers Association, is part of a nationwide home loan delinquency survey.
The average percent of homes in foreclosure nationally is 4.5 percent.
Nevada, Arizona and California trailed Florida for the second, third and fourth place respectively.
"Despite the recession ending in mid-summer, the decline in mortgage performance continues," said Jay Brinkmann, MBA's chief economist. "Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage point in creases in GDP."
Florida ranked second nationally for the percent of home loans that were 90 days delinquent with 6.07 percent, sandwiched between Nevada (8 percent) and Arizona (6.04 percent).
In total, more than 14 percent of American homeowners with a mortgage were either behind on their payments or in foreclosure at the end of September, a record-high for the ninth straight quarter and a problem that could threaten the economic recovery.
The Mortgage Bankers Association's report adds to fears that the housing market and broader recovery could be thwarted by the continuing surge in home loan defaults, especially as the unemployment rate keeps rising. Lost jobs, rather than the shady loans made during the housing boom, are now the main reason homeowners fall behind on their mortgages.
After three years of plunging prices, the housing market started to rebound this summer. While optimists hope the worst is over, pessimists say there are simply too many foreclosed properties that have yet to be dumped on the market and expect further price declines.
Source:
Palm Beach Post
Florida topped the nation in the percent of home loans in foreclosure for the third quarter of this year with banks taking back 12.74 percent of the state's mortgages.
The data, released this morning by the Mortgage Bankers Association, is part of a nationwide home loan delinquency survey.
The average percent of homes in foreclosure nationally is 4.5 percent.
Nevada, Arizona and California trailed Florida for the second, third and fourth place respectively.
"Despite the recession ending in mid-summer, the decline in mortgage performance continues," said Jay Brinkmann, MBA's chief economist. "Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage point in creases in GDP."
Florida ranked second nationally for the percent of home loans that were 90 days delinquent with 6.07 percent, sandwiched between Nevada (8 percent) and Arizona (6.04 percent).
In total, more than 14 percent of American homeowners with a mortgage were either behind on their payments or in foreclosure at the end of September, a record-high for the ninth straight quarter and a problem that could threaten the economic recovery.
The Mortgage Bankers Association's report adds to fears that the housing market and broader recovery could be thwarted by the continuing surge in home loan defaults, especially as the unemployment rate keeps rising. Lost jobs, rather than the shady loans made during the housing boom, are now the main reason homeowners fall behind on their mortgages.
After three years of plunging prices, the housing market started to rebound this summer. While optimists hope the worst is over, pessimists say there are simply too many foreclosed properties that have yet to be dumped on the market and expect further price declines.
Source:
Palm Beach Post
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