From McClatchy Newspaper:
WASHINGTON — Foreclosure start rates in 34 states declined during the second quarter of 2007, but the national average rose again to record levels because of problems in Arizona, California, Florida and Nevada, the Mortgage Bankers Association reported Thursday.
The trade association released its latest national mortgage-delinquency numbers, which showed that 5.12 percent of mortgage loans nationwide were delinquent — at least 30 days past due on a payment — and 1.40 percent of all loans had started the foreclosure process.
While these percentages seem small, they reflect high-water marks for the lending industry. For the third consecutive quarter, the foreclosure start rate was the highest in the history of the national survey, which has been conducted since 1953.
The report also provided an important geographic snapshot. Rust Belt states, hampered by an exodus of jobs, are seeing the most foreclosures, while states that had rapid run-ups in home prices and heavy issuance of adjustable-rate loans top the delinquencies list.
A closer look at the numbers confirms a widening problem with adjustable-rate loans issued to sub-prime borrowers, those with the weakest credit histories. The survey of 44 million outstanding home loans showed that 18 states now have delinquency rates on adjustable-rate sub-prime loans of 19 percent or higher. Mississippi and West Virginia each had more than 26 percent of these loans delinquent.
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