U.S. Loan foreclosure rate ties record high

This was due mostly to delayed home seizures and increased processing, however. The delinquency rate for mortgage loans dropped to 8.93%, which Mortgage Bankers Association (MBA) Chief Economist Jay Brinkmann said was where it was three years before, at the beginning of the recession in the U.S.

“Every state but two saw a drop in the 90-plus day delinquency rate and the two increases were negligible,” said Brinkmann.

Mike Fratanoni, MBA’s vice president for single family research, said the reason for the record number of foreclosures then was paperwork and processing issues.

“With fewer loans exiting the foreclosure process through sales, the foreclosure inventory rate naturally increased, even as fewer foreclosure starts meant that fewer loans entered the foreclosure process,” he said.

Also this week, Lender Processing Services (LPS) produced its own foreclosure stats, reaching similar results. Whereas the delinquency rate was down 18.8% year-over-year at the end of 2010, the total U.S. foreclosure pre-sale inventory rate was up 7.9%. Florida, Nevada, Mississippi, Georgia and New Jersey had the highest percentage of combined foreclosures and delinquencies, according to LPS.

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