Number of Delinquent Residential and Commercial Property Owners Rise- By: John Cutts
A big number of residential and commercial property owners all around the U.S. continue to miss their monthly loan obligations. The biggest increases for the third quarter were recorded mostly among Northeastern states compared with the previous year. Nationwide, mortgage delinquency rate jumped at a slower pace compared with regional increases.
In Illinois, Rockford repo homes for sale and foreclosed properties in various local areas are expected to increase in the coming months as the whole state recorded a delinquency rate increase of over 10%. For the third quarter, the number of homeowners who are at least two months behind in their loan payments increased to 6.55%. This represents a 10.1% increase when compared with the 2009 third quarter rate of 5.95%.
According to housing industry observers, Illinois repo homes might not be the only ones set for an increase in total numbers, foreclosures in northern states like Delaware, Connecticut, New Jersey, New York and Maine might also record higher distressed property totals as delinquency levels in these regions also rose by big margins during the July-September 2010 quarter.
With residential and commercial property foreclosures already dragging the values of real estate down, any increase in delinquency rates is being seen by analysts as further threat to an already shaky real estate industry. However, most analysts admit that a single quarter increase is not enough to determine the future trend of mortgage payments in the country.
One good thing about analysts' concerns over potential rise in foreclosures and property repossessions is that national delinquency levels have risen by less than 1% during the third quarter of 2010. The current national rate is at 6.44%, slightly higher than the 6.25% recorded in the 2009 third quarter. It also represents a decline when compared with the 2010 second quarter when delinquency levels were pegged at 6.67%. Some housing market experts are predicting that the nationwide delinquency rate will decrease further by the end of 2010 to around 6.21%.
Although the projected fourth quarter rate is still way higher than the average rate of 1.5-2% recorded during normal market conditions, it will still be better than the 7.89% recorded in the 2009 fourth quarter. Analysts have stated that the year-by-year improvement in nationwide delinquency levels is mainly due to lenders foreclosing on residential and commercial property mortgages that are heavily delinquent.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.