1.2 Million Homes in Foreclosure

Last Friday Mortgage Bankers Association (MBA) issued a report showing a record 1.2 million homes were in foreclosure during the second quarter of 2008. This was 2.8% of all outstanding loans, and double the same period last year.

During the three months ended June 30, 2.9 million homeowners, or 6.4%, were behind on their payments, up more than 25% from last year.

Jay Brinkmann, MBA's Chief Economist said: "The national foreclosure numbers continue to be driven by the hardest hit states that are continuing to get much worse. The increases in foreclosures in California and Florida overwhelmed improvements in states like Texas, Massachusetts and Maryland."

California and Florida accounted for 39% of all foreclosures started during the quarter.  

A few of of our past posts on home foreclosures:

Survey Says Home Values Must Fall Another 14%

A Record Number of Homeowners Avoid Foreclosure in the Second Quarter

Jumbo Financing and the Impact on The San Diego Real Estate Market

Home Builders Pushed 100% Loans to Move Properties

San Diego County Foreclosures up 125% from 2007

CALIFORNIA HOME FORECLOSURE SALES JUMP 22.5%

Credit Impact of Real Estate Short Sales & Deeds In Lieu