Percentage of Homes in Foreclosure Fell in Q2

Washington, DC, Aug. 26, 2010–The percentage of homes somewhere in the foreclosure process fell in the second quarter, the first drop since 2006 and the largest quarter-to-quarter drop since 2005, the Mortgage Bankers Association reported on Thursday.

However, the association’s quarterly delinquency report showed that short-term delinquencies are increasing, which could signal another rise in foreclosures to come.

The percentage of mortgage loans somewhere in the foreclosure process was 4.57% in the second quarter, down from 4.63% in the first quarter; the percentage is still up from 4.3% a year ago.

However, the percent of loans one payment behind is now a seasonally adjusted 3.51%, said Jay Brinkmann, the MBA’s chief economist, in a news release. The percentage peaked in the first quarter of 2009 at 3.77%.