12 percent are behind on mortgage or in foreclosure
NEW YORK – A record 12 percent of homeowners with a mortgage are behind on their payments or in foreclosure as thespreads to borrowers with good credit. And the wave of foreclosures isn’t expected to crest until the end of next year, 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 percent ofto borrowers with good credit were in the foreclosure process.
At the same time, almost half of all adjustable-rate loans made to borrowers with shaky credit were past due or in foreclosure. There were no signs of improvement.
The pain, however, is spreading throughout the country as job losses take their toll. The number of newly laid off people requesting jobless benefits fell last week, the government said Thursday, but the number of people receivingwas the highest on record. These borrowers are harder for lenders to help with loan modifications.