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| December 7, 2011 |
Foreclosure Update |
This issue contains the most recent information from the Mortgage Bankers Association's National Delinquency Survey, which includes figures on mortgage delinquency rates, foreclosure initiation rates and foreclosure inventory for the third quarter of 2011.
Most delinquency and foreclosure indicators remain fairly positive for the month of October and the third quarter. However, any improvement is highly dependent on general economic conditions and recovery in the housing market is still seen to be a long slow process.
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Foreclosure Deeds
There were 262 foreclosure deeds recorded in October 2011, an increase of less than 3% from foreclosure deeds recorded in October 2010, and a decrease of 13% from the number of foreclosure deeds recorded in the prior month. The cumulative total for the first ten months of 2011 is 8.5% below last year's record pace of foreclosures. Nonetheless, there continue to be significant numbers of New Hampshire households that are delinquent on their mortgage. In addition, lenders have allowed the period of delinquency prior to foreclosure to extend in part due to delays in document processing and in part in hopes that the market will improve, thus mitigating their losses. These conditions set the stage for a protracted period where significant numbers of foreclosed and distressed properties will negatively influence the housing market, slowing its overall recovery.
Foreclosure Auction Notices
Foreclosure auction notices provide an up-to-date indication of the number of households who have fallen seriously behind in their mortgage payments. Foreclosure auction notices increased by less than 2% in October to 647 from 636 in the prior month. This is a decline of nearly 14% when compared with October of last year, and the lowest October monthly activity since 2007. This continued decline in foreclosure notice activity is suggestive of future declines in the number of foreclosure deeds.
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Mortgage Delinquency Rates
Based on the Mortgage Bankers Association's National Delinquency Survey, the third quarter 2011 delinquency rates increased for the U.S., New England and New Hampshire. This is the second quarterly increase in a row for New Hampshire's delinquency rate, yet reflects a return to the typical seasonal pattern. However, with a rate that is nearly one percentage point lower that it was one year ago, this marks the fifth quarter in a row with a decline when compared with the same quarter in the prior year. While these delinquency rates remain very high, the declines in delinquencies offer some evidence that the foreclosure crisis, while far from over, may have turned the corner.
New Hampshire's delinquency rate is one percentage point lower than the U.S., 0.6 percentage points lower than New England as a whole, and lower than four of the five other New England states.
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Foreclosure Initiation Rate
From the same source, the foreclosure initiation rate in New Hampshire in the third quarter of 2011 increased to 0.99%, only about 0.1% below the historic peak rate recorded for the state in the third and fourth quarter of last year. The foreclosure initiation rates in New England and U.S. also increased in the third quarter. The rate of foreclosure initiation in New Hampshire is well below the rate in Rhode Island, similar to the rate in Connecticut and Maine, but above the rates in Vermont and Massachusetts.
Foreclosure Inventory
The inventory of properties in the foreclosure process is about 2.4% of all homes with mortgages in New Hampshire. This rate declined again in the third quarter of 2011, but remains very near its record high. At the current pace of foreclosure deed recordings, it could take more than 18 months to clear this inventory, without any new foreclosure initiations.
Resources for Home Owners
 Home owners who find themselves facing difficulty paying their mortgage or who may have already received a notice of foreclosure may still have resources available to them to assist in saving their home. One of those resources is HomeHelpNH.org, a website created by the state of New Hampshire that is designed to help troubled home owners find answers to their questions. The site offers a large amount of information in an easy to understand format, along with links to websites offering programs that may help them and contact information for free housing counselors to assist them in their efforts to save their home.
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| Foreclosure Update |
is a publication of the Policy, Planning and Communications Group of New Hampshire Housing Finance Authority
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New Hampshire Housing Finance Authority is a self-supporting public benefit corporation. The Authority operates a broad range of programs designed to assist low and moderate income persons and families to obtain decent, safe and affordable housing.
Sincerely,
Jane Law
Director, Communications
New Hampshire Housing Finance Authority
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