Report: Region's Foreclosure Crisis 'Far from Over'

In June, about 104,000 home loans, or 8 percent of all mortgages in the Washington, D.C., region, were delinquent, according to the Washington, D.C.-based Urban Institute's newly released Housing in the Nation's Capital 2009 report. Of those loans, 51,500 were at least 90 days late.

Mortgages in this state of delinquency are likely go into foreclosure, the report stated, meaning tens of thousands of more area homes will soon be up for auction.

"The foreclosure crisis is far from over," the report's lead researcher, Kathy Pettit, warned in a statement. "How well area governments and service agencies coordinate their responses will influence the pace of the housing market recovery and determine the extent of long-term harm on our neighborhoods and families."

In Loudoun, the report showed that 2.9 percent of all mortgages in June were 30 to 89 days delinquent, while another 3.3 percent were at least 90 days late. In Fairfax County, 2.5 percent of housing loans were 90 days delinquent, while Price William’s figure was 5.5 percent.

The report also said that the number of delinquent loans that are considered prime is rising. Early on, subprime loans dominated the housing crisis. However in June, about 30 percent of the region’s delinquent loans were prime, which is nearly triple the amount of 2007.

The report blamed rising unemployment as one of the main culprits for the area’s lingering mortgage problem.

The report did note that reduced home prices and interest rates, as well as the $8,000 tax credit for first-time homebuyers, were helping the housing market. According to the report, home sales were up 11 percent the first half of this year, compared to the same span in 2008.

See www.urban.org to learn more.