U.S. home foreclosures soar to record high

Xinhua
Posted: 2007-12-10 20:19:07

 Home foreclosures in the United States soared to an all-time high in the third quarter, while homeowners with spotty credit who have subprime adjustable-rate loans were especially hard hit amid the housing industry meltdown.

  The Mortgage Bankers Association in its quarterly snapshot of the mortgage market released Thursday said the percentage of all mortgages nationwide that started the foreclosure process rose to a record high of 0.78 percent during the July-to-September period. That surpassed the previous high of 0.65 percent set in the second quarter.

The delinquency rate for all mortgages climbed to 5.59 percent in the third quarter. That was up from 5.12 percent in the second quarter and was the highest since 1986, the association said. Payments are considered delinquent if they are 30 or more days past due.

The percentage of subprime adjustable-rate mortgages that entered the foreclosure process climbed to a record of 4.72 percent in the third quarter. That was up from 3.84 percent in the second quarter. Late payments jumped to a record high of 18.81 in the third quarter, up from 16.95 percent in the second quarter.

The association's survey covers more than 45 million home loans nationwide.

Homeowners with spotty credit histories or low incomes who took out higher-risk subprime adjustable-rate mortgages have suffered the most distress as the housing market went from boom to bust.

The mortgage meltdown has hit financial companies with billions of dollars in losses from bad subprime mortgage investments. Some lenders have been forced out of businesses. The situation has elevated the odds of the country falling into a recession and roiled Wall Street.

(Agencies)