Investors who are into flipping houses might have fewer choices in the near future as mortgage delinquency in Wisconsin declined during the 2010 fourth quarter. Nationwide, delinquency rates dropped to their lowest since the latter part of 2008. However, foreclosure rates remained at high levels in most states.
Milwaukee repo houses and foreclosed homes in the whole state are still high, but the number might soon ease as delinquency falls in the region. According to data released by the Mortgage Bankers Association, around 6.25% of homeowners in the state were behind in their mortgage payments during October-December 2010. The figure was much lower than the 2009 fourth quarter when 8% of borrowers were late in paying their loans.
Local housing analysts are hoping that the drop in delinquency figures will result in fewer Wisconsin repo homes for sale and foreclosed properties in the coming months. However, they did caution that it will take quite some time before existing foreclosures can get through the system and inventories of distressed properties return to normal market levels.
The association report also showed that nationwide, foreclosure rates were up, but delinquency rates have gone down. For investors flipping houses, there were more properties to buy and sell last quarter, but the number may soon dwindle if the delinquency decline continues. Overall, the percentage of properties under foreclosure in the 2010 fourth quarter increased to 4.63% compared with the 4.39% posted in the 2010 third quarter. The figure was also higher than the 2009 fourth quarter, when nationwide foreclosures accounted for 4.58% of existing mortgages.
However, the number of homeowners in danger of losing their properties to foreclosures or repossession home for sale declined as delinquency rate dropped to 8.22% nationwide. The percentage was lower than the July-October 2010 figure of 9.13% and the October-December 2009 figure of 9.47%. The delinquency statistics included borrowers that are at least 30 days behind in their payments, but have yet to enter the foreclosure process.
According to housing market analysts, investors who are into flipping houses will still have a lot of opportunities to purchase low-priced properties this year as foreclosure numbers remain high. However, the declining delinquency rate will eventually lower the number of distressed properties, although analysts admit that this scenario might take a whole year to happen.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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