Foreclosures across the nation crossed the million mark during the first quarter creating a record. It is apprehended that worse is yet to come in the forthcoming months.

As per report of The Mortgage Bankers Association of all the loans, 2.5% are in foreclosure. It calculates to affecting 1.1 million borrowers. At the end of the previous year the number had been 938,000 houses. This shows an increase of 2% loans slipping into foreclosure.

Of the loans 1% (448,000 houses) began its entry into the foreclosure zone during the first quarter of the current year. In the last quarter of 2007 the number of houses were 382,000 – calculating to 0.83% that entered foreclosure.

Those who have fallen behind payments are also at a record high – 3 million house loans calculating to 6.4%. These have stumbled on at least one installment. Nearly 737,000 borrowers are behind three months in payment but have not yet been foreclosed upon.

Although these grim numbers had been apprehended it does not mitigate the feeling of depression. There is little hope that the current pace will slow down until perhaps 2009. It might take a couple of years before the menace will actually start retreating to normal levels. The crisis is the result of thoughtless lending and irresponsible borrowing. The problem has been mired with a record fall in the real estate market right across the country. This is the worst thing that can happen to mortgage loans. To add to the cocktail of woes the overall economy is melting down.

The main accusing finger points to the granting of loans to those unable to afford it. It is the adjustable mortgages that are at the root of it all. Nearly four out of ten of the sub-prime loans are either lagging behind or already in foreclosure. Sub-prime loans account for the foreclosures during this quarter.

Simultaneously the bad weather has not totally spared the prime fixed rate loans. Here too sharp delinquencies and foreclosures have been noticed. However the situation in this zone is not so bad as in the sub-prime category. 431,000 traditional loans are in foreclosure and the adjusted rate is 1.2%. This calculates to being more than double the number of 0.5% rate that had been noted a year ago. 1.2 million prime mortgages are at least a month lagging behind that calculates to 3.7% of these loans. It is an increase of 2.6% from what it was a year ago.

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