Equifax: Severe Mortgage Delinquencies Hit Five-Year Low In June

Posted by Patrick Barnard on August 02, 2013 No Comments
Categories : Residential Mortgage

New research from Equifax shows that first mortgage severe delinquencies reached a five-year low in June.

According to the firm's National Consumer Credit Trends Report, the total balance of severely delinquent first mortgages (90 days past due or in foreclosure) dropped to $325 billion, a decrease of more than 27% from the $450 billion recorded in June 2012.

What's more, first mortgage loans that completed the foreclosure process and transitioned to bank-owned dropped to $13.5 billion, a decrease of more than 19% from the $16.7 billion recorded in June 2012.

Amy Crews Cutts, chief economist for Equifax, says rising home values are the main reasons fewer homeowners are defaulting on their mortgages. She says the trend will likely continue as more homeowners move into positive equity.

‘The implications of this trend are that more homeowners will be able to sell their homes without the hassles of negotiating a short sale or move to take a new job without worrying how they can afford to pay for two homes,’ Cutts says. ‘The healing in the housing market is really gaining momentum and will fuel a stronger pace of economic recovery.’

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