Foreclosure rates in the Twin Cities were stable during August and delinquency rates fell slightly, according to CoreLogic.The report said that the region's foreclosure rate during the month was 2.05 percent, up ever so slightly from 2.04 percent last year. Nationwide the foreclosure rate stood at 3.43 percent, 1.38 percentage points higher than the Twin Cities.
Twin Cities-area homeowners are also doing a better job of staying current on their mortgage. The delinquency rate during August fell from 5.63 percent last year to 5.03 percent this year. Because an estimated 80 to 90 percent of all homeowners who are delinquent on their mortgage end up in foreclosure, falling delinquency rates suggest that the foreclosure rate will remain stable, or decline in coming months. There's a caveat: Mortgage companies are still sorting out legal and procedural issues, so there's some concern that there's a back-log of foreclosures waiting in the wings. Reducing distressed sales is an important first step towards achieving more stable home prices.
