| With mortgage rates on the rise and home prices | | | | The MBA reports that there was an increase of |
| leveling out, foreclosures are becoming more | | | | .26% in delinquencies and a 0.01% increase in the |
| common, especially in the American Midwest.The | | | | foreclosure rate in the last quarter.Three states in |
| rate of foreclosures is closely watched by real | | | | the Midwest are proving to have the highest |
| estate analysts and investors because it can be | | | | rates of loan foreclosures and delinquencies: |
| an indication of market distress.In the last five | | | | Indiana, Ohio and Michigan.The cause of mortgage |
| years, home prices have risen by almost 50%. | | | | problems can be found in many places. One factor |
| Both interest rates and foreclosures have been | | | | is family economic distress, such as job loss or |
| historically low. Any homeowners having trouble | | | | severe illness. The slowing pace of home |
| paying their mortgage were able to easily sell their | | | | appreciation also factors in. The states leading the |
| homes, eliminating the need to default.A recent | | | | foreclosure list have had relatively low home price |
| survey by RealtyTrac shows that there is a | | | | appreciation when compared to the rest of the |
| increase of foreclosure rates and delinquent | | | | country. They also have a below-trend job |
| mortgage payments across the country. Even | | | | growth rate.The national level of foreclosures for |
| though the rates are high compared with the last | | | | the end of the fourth quarter of 2005 was |
| few years, they remain low when compared to | | | | 0.99%. Ohio had 3.22% of loans in foreclosure, |
| the last few decades.The number of mortgage | | | | Indiana had 2.75% and Michigan had 1.75%. The |
| loans in foreclosure rose to 117,259 in February, | | | | East North Central region had a 2.05% foreclosure |
| an increase of 68% from February | | | | rate for mortgages, the highest regional level in |
| 2005.Delinquent accounts are up by 2.84%. | | | | the nation, according to the MBA.Martin Lukac( |
| LoanPerformance, a subsidiary of First American | | | | represents and a finance web-company |
| Real Estate Solutions, reports that 3% of the | | | | specializing in real estate/mortgage market. We |
| most risky loans were 90 days delinquent in | | | | specialize in daily updates, rate predictions, |
| February. Ninety-day delinquencies were up 0.76% | | | | mortgage rates and more. Find low home loan |
| for borrowers with good credit.Doug Duncan, chief | | | | mortgage interest rates from hundreds of |
| economist of the Mortgage Bankers Association, | | | | mortgage companies! |
| says that the rise in delinquencies isn't surprising. | | | | |