According to the Mortgage Bankers Association, foreclosure and delinquency rates decreased in the 4th quarter of 2010. Delinquencies (at least one mortgage payment past due, but not in foreclosure) dropped from 9.13% in the 3rd quarter to 8.22% in the 4th quarter. This was also down from 9.47% is the 4th quarter of 2009.
Foreclosure starts in the 4th quarter of 2010 were at 1.27%, which is down from 2.34% in the 3d quarter of 2010 and 4th quarter of 2009. The number of loans in foreclosure was at 4.63%, up from 4.39% in the 3rd quarter and 4.58% a year ago. However, this can be explained by a halt in foreclosure processing in September and October, which, in effect, prevented the resolution of some foreclosures, even as new ones were entering the pipeline.
“While delinquency and foreclosure rates are still well above historical norms, we have clearly turned the corner. Despite continued high levels of unemployment, the economy did add over 1.2 million private sector jobs during 2010 and, after remaining stubbornly high during the first half of 2010, first time claims for unemployment insurance fell during the second half of the year. Absent a significant economic reversal, the delinquency picture should continue to improve during 2011”, Jay Brinkmann, the MBA’s chief economist noted.