Mortgage delinquencies drop in Massachusetts
While much of the country is still struggling with high rates of foreclosure and mortgage loan delinquencies, Massachusetts recently saw these figures decrease during the fourth quarter of 2010.
In total, mortgage delinquencies fell to 8.46 percent during this time, down 14 basis points from the previous three months. In addition, the number of loans at the start of the foreclosure process decreased by 27 basis points to 0.86 percent.
However, the Mortgage Bankers Association was quick to downplay these decreases in its report, noting that neither the third or fourth quarter figures have yet to be seasonally adjusted. Typically, these rates see slight fluctuations following this process.
The biggest declines were observed in the delinquency rate among prime adjustable rate mortgage loans. The number of consumers with these loans who were late on their monthly payments fell by 51 basis points in the fourth quarter.
Overall, the study indicates recent changes in the state foreclosure process yielded benefits . Massachusetts is one of many states that have begun to implement court-supervised mortgage modification programs in recent months. These states have also typically seen decreases in the foreclosure rate following the implementation of increased legal procedures.