Survey: Fla. home loan delinquency highest in nation

Nearly 23 percent of residential loans in Florida were delinquent or in foreclosure in the second quarter, according to a survey by the Mortgage Bankers Association.

Florida has the highest rate in the nation, followed by Nevada, Arizona and Michigan.

“Florida continues to establish itself as the worst state in the union for mortgage performance, closely followed only by Nevada,” MBA chief economist Jay Brinkmann said in a news release.

At the end of the second quarter, nearly 12 percent of Florida residential loans were in the process of foreclosure, up from 10.6 percent in the previous quarter. An additional 10.8 percent were delinquent by at least 30 days, up slightly from 10.7 percent in the first quarter.

They survey noted that delinquency rates for subprime loans were declining, while the problems in prime loans were increasing. Federal Housing Administration-backed loans also suffered from higher delinquency rates.

“It is unlikely we will see meaningful reductions in the foreclosure and delinquency rates until the employment situation improves,” Brinkmann said. “In addition, in some areas where a number of borrowers have mortgages that are larger than the current value of their homes, any life events such a divorce or loss of a job are likely to translate into foreclosures until prices in those areas recover, not just flatten.”

Nationwide, 8.9 percent of residential loans were delinquent and an additional 4.3 percent were in the process of foreclosure at the end of the second quarter. link....