Delinquencies on home loans dropped in March to 0.84 percent of the nationâ€™s 50.2 million mortgages â€” the first month since 2007 that delinquencies were below the 1 percent mark, Lender Processing Services Inc. reports.
Loans that are at least 60 days delinquent (First-time defaults) peaked in January 2009 at 2.89 percent.
As the economy and employment gradually are on the mend and home prices rise, more home owners are keeping up with their mortgage payments.Â This last bunch of foreclosures should be worked through in the next 18 to 24 months. After that there should be some great mortgage credit quality
Mortgage default rates are highest among underwater borrowers. Four percent of borrowers have defaulted on their loans that owe at least 50 percent or more on their home, compared with 0.6 percent of home owners with equity, according to LPS.
Home owners are actually seeing equity once again in their homes, as prices rise. The number of mortgages with negative equity dropped to 18 percent of homes with a mortgage in January, down from 41 percent one year earlier.To view the original article, click here: http://realtormag.realtor.org/daily-news/2013/05/07/mortgage-delinquencies-fall-2007-lows