Mortgage delinquencies fall but foreclosures up sharply

For the first time in two years, fewer homeowners are missing mortgage payments, Treasury Department regulators reported Wednesday, but foreclosures are surging as many loan-modification efforts fail. Three years have passed since the mortgage debacle made most sub-prime and nontraditional loans unavailable, and most loans since have been “plain vanilla” fixed-rate mortgages to prime-credit borrowers.

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3d rendering of a row of luxury townhouses along a street

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