Wednesday, August 8, 2012

Fewer foreclosures on the horizon as mortgage delinquency rates ...

By Dennis Norman, on August 8th, 2012

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The record levels of foreclosures we have seen should be a thing of the past as we continue to see mortgage delinquencies drop, which is a good thing for the housing market but a mixed blessing for investors. One the one hand, investors should be able to sell their property for higher prices as the market has less negative impact from foreclosures, but on the other hand there will be fewer foreclosures out there presenting some great buying opportunities to investors.

TransUnion just released their latest mortgage delinquency report which shows the national mortgage delinquency rate, for borrowers 60+ days past due, dropped to 5.49 percent during the 2nd quarter marking the second consecutive quarter the delinquency rate has decreased. The mortgage delinquency rate has now fallen almost 9 percent in the first six months of 2012.

2nd Quarter, 2012 Mortgage Statistics ? Delinquency Rates?

Quarter-over-Quarter    Q1 2012    Q2 2012  Pct. Change
 -------------------------------------------------------
 USA                      5.78%      5.49%     (5.02%)
 -------------------------------------------------------
 
 Year-over-year          Q2 2011    Q2 2012  Pct. Change
 -------------------------------------------------------
 USA                      5.82%      5.49%     (5.67%)
 -------------------------------------------------------
 
 Highest Mortgage
 Delinquency States       Q2 2012
 ---------------------------------
 Florida                  13.48%
 ---------------------------------
 Nevada                   10.85%
 ---------------------------------
 New Jersey               8.15%
 ---------------------------------
 Maryland                 6.79%
 ---------------------------------                      
 
 Lowest Mortgage
 Delinquency States      Q2 2012
 ---------------------------------
 North Dakota             1.32%
 ---------------------------------
 South Dakota             1.94%
 ---------------------------------
 Nebraska                 2.24%
 ---------------------------------
 Wyoming                  2.41%
 ---------------------------------                      
 
 Top 3 Year-over-Year
 Increases               Q2 2011    Q2 2012  Pct. Change
 -------------------------------------------------------
 Arkansas                 3.24%      3.75%      15.74%
 -------------------------------------------------------
 New Jersey               7.43%      8.15%      9.69%
 -------------------------------------------------------
 Washington               4.92%      5.33%      8.33%
 -------------------------------------------------------
 
 Top 3 Year-over-Year
 Declines                Q2 2011    Q2 2012  Pct. Change
 -------------------------------------------------------
 California               7.83%      6.13%     (21.71%)
 -------------------------------------------------------
 Arizona                  7.78%      6.14%     (21.08%)
 -------------------------------------------------------
 Wyoming                  3.01%      2.41%     (19.93%)
 -------------------------------------------------------
 Source: TransUnion

Q2 2012 Mortgage Statistics ? Mortgage Debt Per Borrower

                                                Pct.
 Quarter-over-Quarter    Q1 2012    Q2 2012     Change
 -------------------------------------------------------
 USA                     $188,196   $188,341    0.08%
 -------------------------------------------------------
 
 Year-over-Year          Q2 2011    Q2 2012  Pct. Change
 -------------------------------------------------------
 USA                    $189,205    $188,341   (0.46%)
 -------------------------------------------------------
 
 Highest Mortgage Debt
 States                  Q2 2012
 ---------------------------------
 District of Columbia    $374,709
 ---------------------------------
 California              $329,465
 ---------------------------------
 Hawaii                  $314,415
 ---------------------------------
 Maryland                $248,832
 ---------------------------------                      
 
 Lowest Mortgage Debt
 States                  Q2 2012
 ---------------------------------
 West Virginia           $106,533
 ---------------------------------
 Mississippi             $108,672
 ---------------------------------
 Oklahoma                $113,537
 ---------------------------------
 Arkansas                $114,893
 ---------------------------------                      
 
 Top 3 Year-over-Year
 Increases               Q2 2011    Q2 2012  Pct. Change
 -------------------------------------------------------
 North Dakota            $115,461   $120,241    4.14%
 -------------------------------------------------------
 Ohio                    $126,503   $131,701    4.11%
 -------------------------------------------------------
 West Virginia          $102,807   $106,533     3.62%
 -------------------------------------------------------
 
 Top 3 Year-over-Year
 Declines                Q2 2011    Q2 2012  Pct. Change
 -------------------------------------------------------
 Nevada                 $224,100   $214,262    (4.39%)
 -------------------------------------------------------
 Arizona                $199,403   $193,169    (3.13%)
 -------------------------------------------------------
 Florida                $156,141    $152,781   (2.15%)
 -------------------------------------------------------
 Source:TransUnion

Source: http://realestateinvestordaily.com/foreclosures/fewer-foreclosures-on-the-horizon-as-mortgage-delinquency-rates-continue-to-decline/

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