Home foreclosures hit record high
A record 1.35 million U.S. homes were in foreclosure in the third quarter, CNNMoney reported. According to the Mortgage Bankers Association’s (MBA) national delinquency survey, that’s a 76 percent increase from the same period a year ago.
“We have not gone into past recessions with the housing market as weak as it is now,” said Jay Brinkmann, the MBA’s chief economist.
The foreclosure rate was pushed up to 2.97 percent in the third quarter, and the number of homeowners falling behind on mortgage payments increased to 6.99 percent, up from 5.59 percent in the same period a year ago, the MBA said.
“It is likely that a much higher percentage of delinquencies caused by job losses will go to foreclosure than we have seen in the past,” Brinkmann said.
Economists believe the weakened economy and mounting job losses will continue to push the number even higher.
“Until we see a turnaround in the job situation, we’re not going to see these numbers improve,” Brinkmann said. “We’re seeing more loans build up in the 90-days bucket as lenders work to modify loans and states put in place programs that delay foreclosures.”