May 7th, 2014 12:54 PM by Leonard Silvestri
Recent studies show the biggest drop in mortgage delinquencies in three years. The amount of homeowners with a mortgage higher than the actual net worth of the home has decreased significantly. Recent polling shows that decline from 35% over the past few years to an all-time low of 10%. States employ their own foreclosure processes including judicial and non-judicial proceedings. Many blamed the states individual foreclosure processes that resulted in fluctuating delinquency stats. This article notes the decreasing share of origins over the past 10 years and the effects of negative equity.Negative equity, the percentage of homeowners with a mortgage who owe more on that mortgage than the home is worth, has declined to a national rate of about 10 percent from a high of near 35 percent during several periods in the financial crisis. While the rate of negative equity in both judicial and non-judicial states have moved in parallel throughout the last six years, the rate in judicial states has always been higher and is now about 40 percent above that in non-judicial states.