Surging unemployment, backlog from recent foreclosure moratoria have contributed to the increased delinquencies and foreclosures in the US.
The delinquencies in loans that were 60+ and 90+ days climbed significantly. According to the stats released by FHFA, 60+ days’ delinquencies surged by 47 percent in January 31st 2009 from November 30th 2008. The 60+ days delinquencies in November were 834,831 and surged to 1,229,051 in January 31st 2009. The 60+ day delinquencies in case of prime loans surged by around 70 percent and non-prime loans surged by 23 percent.
The delinquencies in loans by 90+ days have surged to 2.45% in January 31st 2009. It was 2.14 percent in December 31st previous year.
Foreclosure sales and third-party sales declined by from the prior three-month average of 16,342 to 3,711 in December, and 79% to 3,391 in January. The foreclosure sales suspension, implemented in November 2008 plays an important role in this declination.