Housing foreclosures, mortgage delinquencies up across region

Posted January 5, 2012

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— Triangle mortgage foreclosures increased in October from a year ago, and, at the same time, more homeowners fell behind on their payments, according to numbers released Thursday by real estate tracking firm CoreLogic.

The statistics come even as economists at two events in the Triangle this week forecast growth in the economy and talked about the real estate market stabilizing or hitting bottom with interest rates now under 4 percent. The CoreLogic information provides a more somber view.

In Raleigh-Cary, foreclosures rose to 1.87 percent of mortgages from a year earlier, up more than half a percentage point. At the same time, mortgage delinquencies of 90 days or more increased to 4.41 percent. A year earlier, the rate was 4.22 percent.

In Durham-Chapel Hill, foreclosures hit 1.96 percent, up from 1.26 percent in 2010. Delinquencies rose to 4.83 percent from 4.51 percent.

According to the North Carolina Association of Realtors, sales of new and existing homes did grow in November, by 10 percent from a year earlier, to 1,425. However, prices fell 9 percent, to an average cost of $218,865.

"I think that was something we were expecting to increase," said Stacey Anfindsen, president of the Raleigh Regional Association of Realtors.

Anfindsen said one of the reasons for the increase was a delay in processing foreclosures while banks over the past six months reviewed their policies and protocols.

Foreclosures up in Triangle Foreclosures up in Triangle

The review was partly the result of big banks' questionable foreclosure practices and also partly because of new laws and regulations aimed at helping homeowners.

Now that more of those cases are being addressed, Anfindsen said, the foreclosure numbers are on the rise.

The CoreLogic statistics also worsened elsewhere in the state.

In Fayetteville, the foreclosure rate climbed to 1.71 percent from 1.18 percent for the same month in 2010. Delinquencies grew to 4.89 percent from 4.35 percent. Sales of existing homes in November fell 21 percent from a year earlier, to 172. The average price declined 1 percent, to $125,228.

In Rocky Mount, foreclosures surged to 2.8 percent, up nearly a full point from 1.97 percent in 2010. Delinquencies did decline slightly, to 7.32 percent from 7.38 percent. Sales of existing homes fell slightly, to 46 from 48 a year earlier. The average price, however, dropped 13 percent, to $108,740.

Across North Carolina, foreclosures jumped to 2.58 percent from 1.77 percent a year earlier. The national foreclosure rate is 3.5 percent.

Overall, 5.6 percent of North Carolina homeowners were 90 days or more behind on payments, up from 5.41 percent for the same month a year earlier. The national average is 7.2 percent, down from 7.5 percent from a year earlier.

Across the state, housing sales in November increased 8 percent, but prices fell 8 percent, to an average of $192,511.

Darlette McCormick, a real estate agent with Carolina MaxRealty who volunteers with a foreclosure counseling service, said the threat of losing a home when owners fall behind on their payments can be scary.

One piece of advice that she gives homeowners is to be proactive. Doing nothing does not work, she said. The best approach for them to take is to contact their lender and seek foreclosure counseling.

"There's a lot of confusion out there," she said. "I've talked to several people who really don't know how far behind they are – people who don't know where they are in the process – and they're frustrated."


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  • maggieknowlya Jan 6, 2012

    "There's a lot of confusion out there," she said. "I've talked to several people who really don't know how far behind they are – people who don't know where they are in the process – and they're frustrated."

    Really? Give me a break! If someone is too confused to be able to say "oh let me see....the last payment I made was in ___,20__ so I must be ___months behind."then they're probably too confused to be dealing with a mortgage period.

  • Lamborghini Mercy Jan 6, 2012

    Izzy -Family business bankrupt- some people truly do need help but the turnip has been sucked on by too many freeloaders!

    Yet you're talking about too many freeloaders, Really? you should be thanking your past family members for what you have today because you didn't create the blueprint for success, it was given to you. All you had to do was simply live within your means and all would have been just fine, but its clear you did not. The only freeloaders are the one's in jail. But lets be honest, you wasn't thinking about them when you made that statement.

  • teapublican Jan 6, 2012

    The Democratic Party took control of Congress in January of 2007. The immediate cause of the fiscal crisis in 2008 was crash of subprime mortgage backed assets. About 85% of subprime mortages were issued by private lenders.

  • Gatsby Jan 5, 2012

    So...People in Wake Co cannot pay for the house they have losing many to foreclosure and yet a "yes" vote on a city bond glides through the ballot last November nice & easy lemon peezy and increases everyones house payment due to a need for more escrow.

    If you voted for the great Raleigh sidewalks bond last November pat yourself on the back and enjoy that tax hike...You earned it.

  • Izzy Jan 5, 2012

    Family business bankrupt, sell assets (or employees) to keep them from losing jobs. Your family goes bankrupt, spouses lose jobs and are without them for 3 years, you use almost ALL of your retirement trying to do the right thing and keep your house payments and bills current, house is on the market~what little market their is, as you try to get just enough out of it to have some to put on a much smaller house, 1 in college and you can't afford to help her. You have tried to do the right thing and work hard all your life and this is where you are.
    Dear Lord, please send us the ability to hang on until you help some of these people realize our nation is in trouble and they come up with some REAL help.
    If we as Americans can't take responsibility for our own actions and our own financial matters, how can we expect anyone else in the world to do the same? Yes some people truly do need help but the turnip has been sucked on by too many freeloaders!!!!
    Stand up America for what is RIGHT!

  • storchheim Jan 5, 2012

    Go back and reread the story. It says the increase in f/c was expected because of clearing the delays and bottlenecks caused by faulty paperwork.

    And Fannie and Freddie don't write mortgages. They buy the mortgages written by the banks so the banks can lend the money again, and guarantee the ultimate beneficiary will be paid by seizing taxpayers' money if necessary.

  • WooHoo2You Jan 5, 2012

    Bush administration advised the democratic controlled congress in 2005 that Fannie and Freddie were on shaky ground with sub-prime mortages.- whatusay

    Wow "advised," and you talk about lack of leadership from Obama...

    BTW, Freddie and Fannie were not the only one writing bad mortgages!

  • gandalla Jan 5, 2012

    and dont let any of the ring wing wacko voices like Rush and Hannity say unemployement is going down because those seeking unemployement have maxed out.
    See the recession has been going on for 4 years now the hardest portions of it coming in 08 you are only allowed a max of 99 weeks unemployement checks. So if the reason the unemployement numbers is going down is because folks are maxing out then why didnt the numbers start to go way down in the mid 09 and 10 because thats when those who started in 08 would be maxing out???

  • WooHoo2You Jan 5, 2012

    What caused the collapse of 2008? Must have been those all those super high paying jobs... says WooHoo2You

    Barney Frank, Chris Dodd and Joe Biden, the Leftist Extremists.-The Yoda

    If that is true why did the party of "sit back and play the blame game" do nothing? They held a majority for years and did nothing to stop what they claim caused the problem....

  • whatusay Jan 5, 2012

    Bush administration advised the democratic controlled congress in 2005 that Fannie and Freddie were on shaky ground with sub-prime mortages. Slobbering Barney and Chris Dodd were in charge of oversite and insisted they were sound. Since the collapse the democrats have done everything possible to blame it on GWB...Democrats controlled the Senate and the House, Obama took office in 2008 and they controlled the presidency, house, and senate until 2010. Sounds fishy that the liberals actually try to defend the incompetentce of their own party.