U.S. Mortgages in Foreclosure Process Hit Record


Inquiring minds are reading that the number of US Mortgages in the foreclosure process set a new record:

About 4.63 percent of loans were in foreclosure in the fourth quarter, up from 4.39 percent in the previous three months, the Mortgage Bankers Association said in a report Thursday. The combined share of foreclosures and loans with overdue payments was 14 percent, or about one in every seven mortgages.

Property seizures plunged at the end of 2010 as lenders such as Bank of America Corp. and JPMorgan Chase & Co. temporarily halted proceedings to review their handling of court documents. That left more homes in the foreclosure process with their status unresolved. Repossessions tumbled 32 percent in the fourth quarter from the prior period, according to data from RealtyTrac Inc. in Irvine.

“It’s clear that the process issues were driving the increase,” said Jay Brinkmann, chief economist of the Mortgage Bankers Association. “We would expect the foreclosure inventory to start coming down as that gets resolved and the court situations get cleared up.”

(…)

Foreclosure actions were started on 1.27 percent of home loans in the fourth quarter, down from 1.34 percent in the prior three months, according to the report. The share of mortgages with overdue payments dropped to 8.22 percent from 9.13 percent in the third quarter as an improving labor market and an expanding economy helped homeowners to stay current on their loans, Brinkmann said.

Just a thought, but Mr. Brinkmann might want to look at the price of filling up with gas the next time he is at the gas station. If he thinks thats foreclosures will be down with $5 per gallon gasoline (which is now considered a possibility) is just too much to take. Between the National Realtors Association and Mortgage Bankers Association, who needs science fiction movies.

Of course, we must remember that these are the same real estate geniuses who sold their headquarters fo:

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