Thursday, June 5, 2008

1 in 11 Mortgageholders Face Loan Problems

About 1 in 11 American homeowners with a mortgage faced foreclosure or fell behind in their payments in the first three months of the year, according to a report released Thursday, a figure that offers a look into the toll caused by the collapse of the housing market.

The period from January to March marked the worst quarter for American homeowners in nearly a quarter-century, according to a widely watched report put out by the Mortgage Bankers Association, a trade group.

All told, about 8.8 percent of home loans were past due or in foreclosure, or about 4.8 million loans. Only a third of American homeowners do not have mortgages.

Both the rate of new foreclosures and late payments surged to the highest levels since 1979. (The delinquency rate includes Americans who are more than a month past due on their home loans.)

To read the full report, click here.

To read The New York Times article by Michael Grynbaum, which puts the issues into further perspective, click here.

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