According to an industry report released recently, more then 11% of all mortgage are whichever offending or in foreclosure. According to the National Delinquency Report from the Mortgage Bankers Association (MBA), the percentage of borrowers at least one month behind in their mortgage payments and it rose to nearly 8% during the fourth quarter of 2008, but not in foreclosure. This turns out to be the highest rate of delinquency ever recorded by the survey, which began in 1972, and reflects a record 13% jump compared to the third quarter.
Jay Brinkmann, chief economist for the MBA, said in a prepared statement that
“Subprime ARM loans and prime ARM loans, which include Alt-A and pay-option ARMs, continue to dominate the delinquency numbers,”
and also added
“Nationwide, 48% of subprime ARMs were at least one payment past due, and in Florida over 60% of subprime ARMs were at least one payment past due.”
However, the number of home in the foreclosure development rose to 3.3%, which is an increase of 0.33 percentage points from the quarter before and up 1.26 percentage points from a year earlier. That represents nearly 1.5 million homes at risk of sliding all the way through foreclosure. The combination of these two, the number of delinquencies and loans in foreclosure came to 11.18%, the highest ever recorded by the MBA.
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