Thursday, May 28, 2009
An industry report shows that a record 12% of homeowners with a mortgage are behind on their payments or in foreclosure as the housing crisis spreads to borrowers with good credit.
The Mortgage Bankers Association said Thursday the foreclosure rate on prime fixed-rate loans doubled in the last year, and now represents the largest share of new foreclosures. Nearly 6% of fixed-rate mortgages to borrowers with good credit were in the foreclosure process.
At the same time, almost half of all adjustable-rate loans to borrowers with shaky credit were past due or in foreclosure.
California, Nevada, Arizona and Florida accounted for 46% of new foreclosures in the country.