Fortunately, the foreclosure crisis has come to an end as the rate of delinquent borrowers have dropped to levels not seen since 2007. However, some numbers still indicate the chaos of the last real estate cycle. However, when looking at the picture as a whole, a division between the strong performances of recent mortgages and a backlog of housing-boom-era loans are evident. Real Estate Closing Solutions, Orlando closing agents, explains the numbers behind this rate decrease.

By the end of 2014, roughly 5.7 percent of borrowers were behind in at least one payment, but not in foreclosure. Surprisingly, foreclosure was down to only 0.17 percent for the third quarter after adjustments for seasonality were made. This is a 0.71 percent drop from the previous year, which has not been seen since 2007.

Foreclosures and delinquencies have increasingly dropped in the last few years due to the increase in home values and improvements in unemployment rates. This is positive when we compare the conditions of a couple years back. In 2008, over four percent of mortgages made were 90 or more days past the due date two years after the loans were taken. In 2012, this was the problem for about 0.5 percent of loans made.

When we see the loans made between 2011 and 2014, there is clear evidence on how many improvements were made, based on credit quality. As rates have hit the lowest percentages since 2007, we are able to confidently say that the chaos from endless foreclosures has diminished. Orlando closing agent professionals, Real Estate Closing Solutions, are always looking to improve the residential and commercial real estate transaction process. For any assistance or questions, contact our Dr. Phillips at 407-615-8550, or our North Orange Ave. office at 407-440-5025 today.