DSNews.com has posted an article that discusses the continuing problem of home foreclosures. Despite numerous government instigated programs to curb foreclosure through loan modifications, the numbers continue to rise. The number of delinquent loans at the end of February of this year was 21.3% higher than the same time last year. The national delinquency rate stood at 10.2%.
Although delinquencies remained relatively level, the nation’s foreclosure inventories reached record highs in February. Based on LPS’ analysis, the foreclosure rate of 3.31 percent represented a 51.1 percent year-over-year increase.
New problem loans are also at their highest numbers in five years. In January of this year, 1.1 million mortgages were at least 30 days delinquent.
LPS noted in its report that as a result of the federal government’s Home Affordable Modification Program (HAMP), delinquent loans that were modified and that remained current through HAMP’s three-month trial period – called “cures-to-current” – have increased. Advanced delinquency rolls, however, remain elevated from a historical perspective, the company said.
Both delinquency and foreclosure inventories remain bloated, LPS said, thanks to high volumes of problem loans in combination with prolonged loss mitigation efforts and foreclosure moratoria.
With 10.2 percent of borrowers delinquent and 3.3 percent in foreclosure, the nation’s total rate of non-current loans has hit 13.5 percent, LPS said.
Freddie Mac’s economic team has released a statement saying that it may take two years or more for the housing market to calm down and return to normal.
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