Jul 25, 2008 3:34 pm US/Eastern
Homeowners Behind On Their Mortgages Nearly Double
MIAMI (CBS4) ―
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The number of households facing the foreclosure process more than doubled in the second quarter compared to a year ago, according to data released Friday. (File)
AP
Sales of new homes fell in June for the seventh time in the past eight months; more proof that the worst housing slump in decades is getting deeper.
Sales were down the most in the South, a drop of 2 percent, with sales falling 0.9 percent in the West. These declines were offset somewhat by sales increases of 5.3 percent in the Northeast and 2.5 percent in the Midwest.
In Miami-Dade and Broward counties, the median existing home price fell to about $299,300.
Meanwhile, interest rates on home loans soared this week to their highest point in a year, meaning borrowers looking to buy a home will face higher monthly payments.
In a separate report on Friday, the number of households facing the foreclosure process more than doubled in the second quarter compared to a year ago.
In both counties, the percentage of borrowers behind on mortgage payments is well above the national average of 4.62 percent, reports Moody's Economy.com.
In the three-month period ending June 30, more than 10.13 percent of borrowers in Miami-Dade with first mortgage loans were behind on payments by 30 days, up from 5.61 percent last year.
In Broward, the delinquency rate was 9.34 percent, up from 5.15 percent during the same three-month period a year ago.
Nationwide, 739,714 homes received at least one foreclosure-related notice during the quarter, or one in every 171 U.S. households, Irvine, Calif.-based RealtyTrac Inc. said.
Soft housing sales, declining home values, tighter lending standards and a sluggish U.S. economy have left strapped homeowners with few options to avoid foreclosure. Many can't find buyers or owe more than their home is worth and can't refinance into an affordable loan.
Foreclosure filings increased year-over-year in all but two states, North Dakota and Alaska.
Nevada, California, Arizona, and Florida continued to clock in the highest foreclosure rates. One in every 43 Nevada households received a filing during the quarter.
Cities in California and Florida accounted for 16 of the worst 20 metro foreclosure rates. Stockton, Calif., had the worst rate, with one in every 25 homes in the town receiving a foreclosure filing. That's nearly seven times the national average.
Economists estimated 2.5 million homes nationwide will enter the foreclosure process this year, up from about 1.5 million in 2007.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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