Foreclosures on the Rise

\r\nSpring and summer proved to be hard seasons for homeowners across America. As mortgage rates dropped, the number of foreclosures rose according to reports issued for the end of the second quarter. The number of foreclosures rose from 0.41% to 0.43% in the April to June quarter. Preliminary reports show that this quarter is maintaining previous numbers, but this data will not be known until November.\r\n

The current percent of foreclosures is the highest recorded in over a year. Though foreclosures are on the rise, the rate is still well below historical standards and is not yet at a point that would worry lenders or the government. Subprime borrowers were the worst affected for foreclosures, with that credit class making up almost 40% of total foreclosures. The amount of late payments for mortgages, however, dipped to less than 4.5%, an indication that some homeowners are struggling to avoid foreclosure. Strengthening economic conditions may have contributed to the drop in delinquency payments, which indicates that foreclosure rates may drop in the third quarter.\r\n