According to the Mortgage Bankers’ Association (MBA), 8.44 percent of homeowners missed at least one payment in the second quarter of 2011, putting 0.12 more homeowners at risk for foreclosure in Q2 of 2011 than were believed to be at risk in Q1. In a “normal market,” only about 1.1 percent of homeowners are delinquent at any given time, says the MBA[1]. At one point last year, delinquent mortgages accounted for more than 10 percent of all residential mortgages. However, that number has declined in 2011, in part due to continued legal issues with many major lenders’ foreclosure process. Analysts predict that delinquencies and foreclosures will rise in the coming months as lenders resolve these bureaucratic issues and resume foreclosure initiations[2]. In fact, MBA chief economist Jay Brinkman says that “the downward trend [in mortgage delinquencies] we saw through most of 2010 has stopped” already.
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[1] http://www.sacbee.com/2011/08/22/3853495/more-americans-at-risk-of-foreclosure.html
[2] http://www.housingwire.com/2011/08/22/delinquencies-rise-foreclosures-fall-in-the-second-quarter-mba
