From The Wall Street Journal:
“The number of mortgage loans at least 30 days past due reached its highest point since 1986 during the third quarter as foreclosure starts increased across all loan types, according to a Mortgage Bankers Association survey released Thursday.
The quarterly survey found the delinquency rate for mortgage loans on one-to-four unit residential properties was 5.59% during the third quarter on a seasonally adjusted basis. That represented an increase of 47 basis points from the second quarter of this year and 92 basis points from the third quarter of 2006."
“In the quarter, 3.12 percent of prime borrowers made their mortgage payments at least 30 days late, up from 2.73 percent in the second quarter, the report said. The subprime share of late payments rose to 16.3 percent from 14.8 percent.
The numbers were driven by California, the U.S.'s largest state, and Florida, Brinkmann said. The two states had 36.4 percent of all of the nation's prime adjustable-rate loans and had 42.4 percent of new foreclosures during the quarter, he said. They had 28.1 percent of subprime adjustable mortgages and 33.7 percent of foreclosure starts for that type of loan.”
“About 994,000 U.S. households are in the process of foreclosure, said Doug Duncan, the MBA's chief economist.
‘Not all of them will lose their house, but that's how many are currently at serious risk of losing their house,’ he said.
The percentage of loans in the foreclosure process rose to 1.69 percent of loans outstanding, up 0.29 percentage point from the prior quarter and up 0.64 from a year earlier.”