U.S. home foreclosures hit record level, due in part to California woes
Source: – Los Angeles Times
The percentage of home loans entering foreclosure nationwide rose to a record level in the second quarter of this year, driven by the one-two punch of sharp home price declines and resetting adjustable-rate loans in California and Florida, the Mortgage Bankers Assn. said today.
“The worst states are continuing to get much worse,” Jay Brinkmann, the MBA’s chief economist, said during a conference call discussing the trade group’s second-quarter report on mortgage delinquencies.
With a combined 18% of the population, “California and Florida accounted for 39% of all the foreclosures started in the country,” Brinkmann said.
The national average for foreclosure starts — the time a lender turns a delinquent loan over to lawyers — was 1.09% during the quarter, up from 0.99% in the first quarter and 0.65% in the second quarter of 2007, the association said.
The latest figure was 1.82% in California, which has 12% of the nation’s population, and 2.21% in Florida, which has another 6% of the population.
Another way to look at the problem: Only eight states were above the national average in foreclosure starts. The others were Arizona, Nevada, Michigan, Rhode Island, Indiana and Ohio
“The problems are not spread equally,” Brinkmann said.
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