Over the past 10 years, economic troubles have caused homeowners across the U.S. to fall behind on their mortgage payments. Unfortunately, this has caused a general increase in the number of foreclosures in many parts of the country. Indeed, many people from all walks of life have run into financial difficulties and have had to work hard to keep their homes. Recently released statistics indicate, however, that things may be starting to take a turn for the better.
According to TransUnion, a leading provider of credit information, the rate of mortgage delinquency in the U.S. — measured by the number of borrowers who are 60 days or more behind on their mortgage payments — dropped just over 23 percent from the end of 2012 through the end of the third quarter of this year. Overall, the mortgage delinquency rate was about 4 percent at the end of the third quarter 2013. This marks the lowest mortgage delinquency rate in the U.S. since the beginning of 2008.
This mortgage delinquency rate does not include loans that have already entered the foreclosure process. Interestingly, the number of loans currently in foreclosure was also down. Statistics indicate a 3 percent decrease in the number of loans currently in foreclosure since the end of 2012. The third quarter of 2013 marked the lowest number of loans in foreclosure since 2008. The good news is that the number of foreclosures is decreasing, even in states like Florida, which has the highest number of homes currently in foreclosure in the country.
In some ways, the reduction in foreclosures currently in process is to be expected. Courts have continued to push foreclosure proceedings through, and the number of new foreclosures has dropped steadily. With luck, the upcoming year will see even further decreases in the number of foreclosures across the U.S.
Of course, an overall decrease in the number of mortgage delinquencies and foreclosure filings does not mean that families are no longer struggling. In some cases, debt related to medical bills or other unexpected costs is causing people to fall behind on their financial obligations. Fortunately, for those who are facing significant debt, no matter the cause, filing for bankruptcy may be an option.
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For more information about whether filing for Chapter 7 or Chapter 13 bankruptcy is right for you, consider speaking to an experienced bankruptcy attorney. A bankruptcy attorney can explain your options and help you better understand the bankruptcy process.