The percentage of homeowners behind on mortgage payments or in the process of foreclosure is at a five-year low for the second quarter, according to a recent survey. Dom Frommeyer, CRMS, the president of NAMB, The Association of Mortgage Professionals, weighs in on the numbers and explains that while the low numbers are a great sign, the mortgage market still isn’t in the clear.
“Mortgage delinquencies skyrocketed when the housing bubble burst and we’re still seeing lingering effects,” says Frommeyer. “It’s great to see the numbers decline suggesting people are making smarter decisions in the housing market, but there’s still a way to go before we see numbers back to where they were before the housing crash.”
According to the survey, the rate of mortgages on one-to-four-unit homes that were at least 90 days past due or in the foreclosure process was at 5.9 percent, compared to 7.3 percent in 2012 and 9.7 percent in 2009. Before the housing bubble burst, the percentage of serious mortgage delinquencies was down to 2.5 percent. “Serious delinquency rates are difficult to recover from and it’s also dependent on each state’s mortgage practices,” continues Frommeyer. “For example, states that don’t require mortgage companies to take back homes by appearing in front of a judge can recover faster compared to states that require judicial foreclosures. That being said, it’s a positive sign to see the numbers decline overall and across the board.”
For more information, visit www.namb.org.