Foreclosure Crisis Showing Improvement As Utah Delinquency Drops- By: John Cutts
The foreclosure crisis is showing some signs of improvement as delinquency rates in the U.S. dropped in most regions in December of last year. Utah, along with most of the U.S. states, posted a lower year-over-year mortgage delinquency rate during December.
Salt Lake City foreclosures and distressed properties in the rest of the region remained high, however. But housing industry analysts stated that a drop in mortgage delinquency rate is a good sign since majority of delinquent homeowners end up getting foreclosed on. They stated that, although it might take some time for foreclosure numbers to decline, declining loan delinquencies signal a brighter future for the state and the whole country's housing market.
Utah foreclosed homes for sale and other properties under some form of foreclosure accounted for 3.3% of total mortgage loans in the state last December 2010. The figure is about the same as what was posted in December of 2009. However, the state did show some positive developments during the month. The percentage of homeowners who were 30 days behind in their mortgage payments declined to 3% in December 2010 from the 3.2% recorded in December 2009.
Although it is still way too early to declare that the foreclosure crisis is decelerating, analysts stated that fewer delinquent homeowners means fewer properties in danger of ending foreclosed in the coming months. They admitted that it will take quite some time before lower delinquency rates manifest as lower foreclosure rates, but this at least can provide state residents with something positive to look forward to.
A report by the Mortgage Bankers Association showed that foreclosed homes all over the U.S. continue to increase in number, but the percentage of borrowers who were 30 days behind in their loan payment had declined last December 2010 to a level not seen since the last month of 2007. According to the report, 3.3% of homeowners nationwide were a month behind in home loan payments in December of last year.
Majority of housing experts have stated that the foreclosure crisis is far from over, but the fact that there had been fewer borrowers falling behind in their home loan payments signals the coming of better times for the nation's housing industry.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.