More Ohio homeowners paying late or in foreclosure

BLADE STAFF AND NEWS SERVICES

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A greater share of Ohio borrowers were late in making home loan payments or were in foreclosure in the spring compared to last winter, a new study shows.

The same study also found nearly 1 of every six mortgages in Michigan was delinquent or in foreclosure in the second quarter, though that was down slightly from the first quarter.

The Mortgage Bankers Association report, released Thursday, shows that one in 10 American households with a mortgage was at risk of foreclosure in the second quarter as the government's efforts to help have had little impact stemming the housing crisis.

About 9.9 percent of homeowners had missed at least one mortgage payment as of June 30, the trade group said. That number, which is adjusted for seasonal factors, was down slightly from a record-high of more than 10 percent for the first quarter.

In a worrisome sign, the number of homeowners starting to have problems with their mortgages rose after trending downward last year. The number in the foreclosure process fell slightly, the first drop in four years.

"Ultimately, the housing story, whether it is delinquencies, homes sales, or housing starts, is an employment story," said Jay Brinkmann, the Mortgage Bankers' top economist.

"Only when we see a consistent increase in employment will we see an increase in sales and starts, and a sustained improvement in the delinquency numbers," he said.

The report shows 11.41 percent of mortgages in Michigan and 10.03 percent in Ohio had payments at least one month late. And 4.47 percent in Michigan and 4.82 percent in Ohio had mortgages in foreclosure.

The delinquency rate for prime fixed-rate mortgages was 6.62 percent in Michigan and 5.80 percent in Ohio, and for subprime fixed-rate mortgages was nearly 28 percent in Michigan and 25 percent in Ohio, according to the trade group.

Michigan ranked fourth-highest among states for late payments on home loans and fourth-highest in new foreclosures in the second quarter.

Ohio ranked 13th in delinquencies and ninth in foreclosures started.

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