Foreclosures, Late Payments, Hit Record in Q1

Washington, DC, June 5, 2008--Home foreclosures and late payments rose to record highs over the first three months of the year, according to the Mortgage Bankers Association.

The biggest problem, the association said, is the sustained fall in house prices, keeping many homes from being sold.

The proportion of mortgages that fell into foreclosure climbed to 0.99 percent in the quarter. That surpassed the previous high of 0.83 percent over the last three months in 2007.

The report also found that more homeowners slipped behind on their monthly payments.

The delinquency rate jumped to 6.35 percent in the first quarter, compared with 5.82 percent for the three months earlier.

Both the rate of new foreclosures and late payments were the highest on record going back to 1979.

The percentage of subprime adjustable-rate mortgages that started the foreclosure process rose to 6.35 percent. The rate was 5.29 percent in fourth quarter, the previous high.

Late payments rose to 22.07 percent from 20.02 percent, the previous high.

The numbers were higher for prime borrowers with adjustable rate mortgages. The proportion of those loans falling into foreclosures jumped to 1.55 percent from 1.06 percent. The delinquency rate rose to 6.78 percent, compared with 5.51 percent.