The Good News/Bad News about Mortgage Delinquencies

TransUnion reports that more mortgages are 60 days or more behind as of the end of the 2^nd quarter compared to the 1^st quarter of the year, but the numbers are smaller than they were in 2009.  A total of 6.67% of active mortgages were behind by 60 days at the end of June. That’s up from the 1^st quarter rate of 5.81%.

The other bit of good news is that the rate of increase is slowing compared to a year ago.  Additionally, there were only 12 states with increased delinquency rates over 2009 2^nd quarter, while last year virtually all states were in worse shape for delinquencies.  This data may indicate that a trend is just getting started toward lower delinquencies and hence fewer foreclosures in the future.

Realtytrac reports that more banks are stepping up the repossession process for homes with bad loans compared to a year ago.  The number of American homes lost to foreclosure in July was 6% higher than in July of 2009.