The number of American households behind on mortgage payments appears to be leveling off at a high level, a survey showed Wednesday.
The Mortgage Bankers Association, a trade group, reported that 14% of mortgage loans on one- to four-unit homes were 30 days or more delinquent or in the foreclosure process as of March 31. That represents about 7.3 million households. The rate was 12% a year earlier.
But the portion of households that are between 30 and 60 days overdue – mostly representing newly delinquent borrowers – declined to 3.45% as of March 31 from 3.77% a year earlier. Jay Brinkmann, chief economist of the MBA, said that the number of borrowers falling behind has declined modestly but that a huge number remain in what has become a very slow foreclosure process.
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The Banks are still holding over $700,000 properties, this number is not a true reflection. When the high end homes have not gone on the books yet. We are waiting for the release of this inventory. Another factor will be Commercial dump, when the Commercial properties start to crash, the overal market will take another down turn.