Foreclosure Percentage at Record in Q4

Washington, DC, Feb. 17, 2011 -- The percentage of mortgages in foreclosure tied a record high in the fourth quarter of 2010, the Mortgage Bankers Association reported.

The percentage of mortgage loans somewhere in the foreclosure process was 4.63%, up from 4.39% in the third quarter and 4.58% in the fourth quarter of 2009.

However, the delinquency rate, which includes mortgages that are at least one month past due but not yet in foreclosure, fell to a seasonally adjusted 8.22% of all loans outstanding, down from 9.13% in the third quarter and 9.47% in the fourth quarter of 2009.

"As we had predicted last quarter, the percent of loans in the foreclosure process increased in the fourth quarter, largely due to the foreclosure paperwork issues that were being addressed in September and October," said Mike Fratantoni, MBA's vice president for single family research, in a press release.