New foreclosures begin to pick up pace
The pace of new home foreclosures edged up again in the third quarter even as the number of borrowers falling behind on their payment eased a bit, according to the latest industry data released Thursday.
Borrowers with subprime adjustable mortgages saw the biggest jump in new foreclosures. Some 4.65 percent of those subprime loans entered the foreclosure pipeline – up from 3.62 percent in the second quarter, a 28 percent increase, according to the Mortgage Bankers Association.
The MBA said the rise was due in part to an increase in the number of loans that failed to get lender approval for a modification. Some states also ended their moratoriums on foreclosures during the quarter.
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