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More Americans at risk of foreclosure in Q2

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http://finance.yahoo.com/news/More-Americans-at-risk-of-apf-3699209895.html?x=0

More Americans at risk of foreclosure in Q2

Number of homeowners at risk of foreclosure rose in 2nd quarter, likely to

increase further

Kravitz, AP Economics Writer, On Monday August 22, 2011, 12:59 pm EDT

WASHINGTON (AP) -- The number of Americans at risk of foreclosure is rising,

reflecting the U.S. economy's continued struggles.

The Mortgage Bankers Association said Monday that 8.44 percent of homeowners

missed at least one mortgage payment in the April-June quarter. That figure,

which is adjusted for seasonal factors, rose 0.12 percentage point from the

January-March period.

In a normal market, the percentage of delinquent borrowers is about 1.1 percent,

according to the trade group.

Delinquent mortgages have plummeted from a record high of more than 10 percent

of residential mortgages a year ago. But the decline is due partly to delays in

foreclosure filings that are backlogged in several state courts, including

Florida, New Jersey, Illinois and New York.

The end of a state and federal investigation into faulty foreclosure paperwork

will likely lead to increased foreclosures later this year.

Analysts say the increase is especially worrisome because it's due mainly to

high unemployment, which tends to raise the number of missed payments and

foreclosures over time. And once delayed foreclosures are re-started, the

economy could suffer a hit.

" The current processing delays mean this will not happen quickly, underlining

our view that both the housing market and the economy will remain weak for a few

years, " said Dales, senior U.S. economist at Capital Economics.

The quarterly survey covers nearly 88 percent of primary residential mortgages

totaling nearly 44 million loans.

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