It’s Not Just Us
Foreclosures are everywhere. Let’s face it – It’s a problem, and it’s going to get worse before it gets better. Statistics being released are good to gauge how big of a deal the foreclosure situation really is.

Power in Numbers
The Mortgage Bankers Association prepared a report recently. The report indicated that (just over) two of every one hundred loans in Iowa were in foreclosure. The good news (if you can really call it that), is that Iowa’s ranking dropped as problems continue to get worse throughout the country. Nationally, Iowa is ranked 14th place in ranking of foreclosures.

The percentage of homeowners across the US that fell behind on their payments hit a record of 6.35%. Overall, 2.47% of all loans were in foreclosure – up from 2.04% at the end of 2007. The states with the highest percentage of foreclosure were:

1. Florida – 4.61%
2. Nevada – 4.12%
3. Ohio – 4.10%
4. California – 3.13%

Hopefully we’re starting to see things improve for Iowa vs. the numbers across the country.

Just My Two Cents
I think things will get worse (again) before they get better. Unfortunately, there are still a ton of adjustable rate mortgages out there for folks who don’t have adequate credit to qualify for a new loan. Loan modifications have become a popular alternative, but in Iowa – we haven’t seen the decline in values and the same use of negative amortization (or pay-option-arm) products that were popular across in other markets. Modifications happen when you can build a super painful story for a lender to show how the adjusted payment will cause huge hardship for you.

If you’ve got a loan that you need help with, please – feel free to get in touch. I’d be happy to help!

Photo Kudos
Original Story: “Iowa Mortgage Picture Darkens” by Donnelle Eller

Tagged as: Foreclosure, Iowa, REO, Statistics