Delinquency, Foreclosure Hit One in 7.5

One in every 7.5 homeowners in the U.S. is either delinquent on their loans or in foreclosure, according to Lender Processing Service. In its December 2009 Mortgage Monitor report, Florida-based LPS said total delinquencies, excluding foreclosure, rose to a record 9.97%, an increase of more than 21% from a year earlier. It also found that .... more than 5% of loans have moved to a more delinquent status, while 1.52% have improved. It did note, however, that the number of foreclosure starts has continued to decline, thanks to loss mitigation efforts such as the federal government’s Home Affordable Modification Program. Thanks to EMII for their report.

I expect this number to grow as long as the unemployment rate stays high. There are also a lot more sub-prime loans getting ready to reset their rates this year.