Foreclosure Properties across the U.S. Soared in September- By: John Cutts
Foreclosure properties across the U.S. soared in number in September, according to the Mortgage Monitor October report from mortgage analyst Lender Processing Services Inc.
LPS said that one in every eight homeowners in the U.S. or 12.5 percent of all homeowners who took out home loans is either in default or in foreclosure. The pace of foreclosure in September increased to 3.12 percent of all residential units, marking a rise of 2.6 percent compared to August and nearly 89 percent compared to September last year.
Among U.S. states, Florida had the highest rate of foreclosure compared to overall number of mortgage loans. More than 10 percent of all mortgage loans in Florida were in foreclosure in September and over 22 percent were in default.
LPS also found that there are record numbers of shadow foreclosures and real-estate-owned properties that have not yet been released to the market.
According to the firm, the number of mortgage loans nearing delinquency has more than doubled the number of default notices, indicating that another flood of foreclosure properties across the U.S. will occur in the coming months.
Almost 33 percent of foreclosure actions are still to be completed after 12 months from filing, marking an increase of 200 percent over the past year. The six-month deterioration ratio for mortgage loans over the past 2 months has risen to 300 percent, indicating that three mortgage loans deteriorate further for every loan restored to current status.
Despite the negative indicators shown in the Mortgage Monitor report, overall home sales in September improved compared to sales in September last year based on home loan application and production data. The report showed that a total of 2,032,973 home loans were granted during the 12-month period ended September 2009, a significant increase from the total of 1,903,723 mortgage loans granted during the one-year period ended September 2008.
According to the Mortgage Monitor, 28 percent of home loans granted over the one-year period ended September 2009 were insured by FHA, a substantial increase from the 16-percent insured by FHA in the 12-month period ended September last year.
The states with the highest number of delinquent loans in September were Florida, Mississippi, Nevada, Georgia, Arizona, Michigan, California, Ohio, Indiana and Illinois while the states with the lowest number of loans in default were North Dakota, Alaska, South Dakota, Wyoming, Nebraska, Montana, Colorado, Vermont, Washington and Oregon.
In another report, the states with the highest number of foreclosure properties across the U.S. in the July to September quarter were California, Arizona, Florida and Michigan.
Article Source :
Author Resource :
John Cutts has been educated in the finer points of the foreclosure market over 5 years.