Foreclosure Problem Growing Worse, MBA Says

Washington, DC, Aug. 23, 2011 -- The home foreclosure problem is growing worse, according to the Mortgage Bankers Association.

The association said that 8.44% of homeowners missed at least one mortgage payment in the April-June quarter. That figure, which is adjusted for seasonal factors, rose 0.12 percentage point from the January-March period.

In a normal market, the percentage of delinquent borrowers is about 1.1%, MBA said.

Delinquent mortgages have declined from a record high of more than 10% of residential mortgages a year ago. But the decline is due partly to delays in foreclosure filings that are backlogged in Florida, New Jersey, Illinois and New York.

The end of a government investigation into faulty foreclosure paperwork will likely lead to increased foreclosures later this year.