Delinquencies highest since at least 1986: Things are bad in Florida, Ohio, Michigan, and Indianaby
The Mortgage Bankers Association said today that delinquencies in the third quarter were at their highest rate since it began surveying in 1986. It was 5.59% seasonally adjusted, up from 5.12% a quarter earlier and 4.68% a year earlier.
The percentage of loans in foreclosure and the percentage entering the foreclosure process also set records in the third quarter. The increases came in all types of loans, not just subprime, although of course the problem is worst in subprime. According to the MBA: “while subprime ARMs only represent 6.8 percent of the loans outstanding, they represent 43.0 percent of the foreclosures started during the third quarter.”
More than a quarter of loans entering foreclosure in the third quarter were in just four states: Florida, Ohio, Michigan and Indiana.