According to the Mortgage Bankers Association, 30% of American homes are owned outright—free and clear—with no mortgage.  Of the 70% of 1-4 family homes that do have mortgages, 96.15% are NOT in foreclosure.

It is true that foreclosure rates are at an all-time high, but you must keep things in perspective. Only 3.85% of the 70% of US homes with a mortgage were actually in foreclosure at the end of the first quarter of 2009.

The MBA’s National Delinquency Survey reports the bulk of national foreclosures are in California, Florida, Arizona, Nevada, and Michigan. These states are artificially driving up the foreclosure numbers, accounting for over half the increase in foreclosure starts. Starts are those just entering the foreclosure process, but not yet in foreclosure inventory.

The delinquency rate is now 8.22% of all outstanding loans, meaning they are at least one payment past due, but not yet in the process of foreclosure.

It is interesting to note that sales of homes priced $80,000 and below have dropped over the past two months in the Houston MLS area, indicating much of the foreclosure inventory has been absorbed here.

If you know someone who is having trouble staying current on their mortgage, please call your Realtor ASAP. Now more than ever, lenders are being encouraged to work with borrowers to find solutions. If you don’t have a Realtor you know and trust, give me a call and I will see what I can do to help.

I’m never too busy for your referrals!