The number of borrowers falling behind on their mortgage payments dropped sharply at the end of last year, a sign the foreclosure crisis is beginning to ebb.
The Mortgage Bankers Association said Friday that the percentage of borrowers who missed just one payment on their home loans fell to 3.6 percent in the October to December quarter, down from 3.8 percent in the third quarter. The decline was even more remarkable because delinquencies usually rise at that time of year due to higher heating bills and holiday spending.
However, more than 15 percent of homeowners with a mortgage had missed at least one payment or were in foreclosure, a record for the 10th straight quarter.
“The bad news is that we still have a big problem,” said Jay Brinkmann, the trade group’s chief economist. “The good news is it looks like it may not get much bigger.”
Though the number of borrowers who missed their first payment declined, the number who were at least three months behind continues to soar. More than 5 percent of borrowers fell into that category in the fourth quarter, up from 4.4 percent in the third quarter. (AP)
