The New York Times reports that nearly one in 10 homeowners are behind on their mortgage. That is about five million households. As I stated on previous post many banks are doing TEMPORARY 90-day loan modifications and not making a true effort in helping homeowners who need it. Many analysts believe it is highly unlikely that permanent loan modifications will be overly successful.

The overall third quarter delinquency rate is the highest ever. It is up from one in 14 mortgage homeowners in 3rd quarter of 2008. The combined percentage of foreclosed and delinquent homeowners is 14.41 percent. The top four concentrated areas with problem mortgages is California, Nevada, Arizona and Florida. The percentage of loans in foreclosure in September was 4.47 percent compared with last year at 2.97 percent.

The subprime foreclosure market has receded and majority of loans foreclosing now are traditional mortgages that were deemed the safest. Due to unemployment many homeowners are struggling to retain their home. There will be a lot more distressed supply moving in the market and it will go up the food chain to middle and high priced homes.

If you are struggling with your mortgage please go to www.ishortsaleaz.com to read about your foreclosure alternatives.