Foreclosure starts jumped by 20% in the third quarter, representing 1.34% of all outstanding mortgages in the U.S., which means an estimated 830,000 consumers could lose their homes over the next several months.
According to figures released by the Mortgage Bankers Association, delinquencies actually fell in 3Q to 9.13% (of all outstanding loans) with declines in almost all late categories — except the category of foreclosures started.
MBA found that 1.34% of loans were headed into foreclosure at Sept. 30, compared to 1.11% at the end of 2Q. A year ago the ratio was 1.36%.
National Mortgage News estimates that the nation's servicers control roughly 61 million mortgages with outstanding balances of $9.9 trillion.
Based on MBA's findings, $903 billion of all outstanding homes loans are in some form of arrears.
MBA's findings however, pre-date the foreclosure-gate scandal, which led to several major servicers declaring moratoriums on the taking of homes.
