In Utah The Sun Peeps Out Behind Foreclosure Clouds

Posted in Foreclosure, September 10th, 2007 |

During the second quarter of this year the foreclosure rate in Utah is down in comparison to what it was the previous year. It remains far behind the average national figures where the number of foreclosure units is staggering.

Towards the end of the June 2007 there were only 0.55% properties in Utah suffering the trauma of foreclosures. It meant a drop of 0.74% in comparison to the figures last year during the same quarter. Among the lowest rankers in the foreclosure race Utah ranks 7th and sits comfortably well below the national rate of 1.40%. During the second quarter lenders began to foreclose on 0.65% of USA mortgages – which was an all time record. In Utah the rate was only 0.29%.

Analysts opine that this is primarily due to the relatively strong economic health of the state and also because there has not been much sub-prime activity.

Delinquent loans are those that have dropped behind their payment schedule by 30 days. In this group Utah’s dropped by 3.45 % in the second quarter this year. This was a considerable drop by 3.56% in comparison to the same months in the previous year. Utah’s average was well below the national figure of 5.12%. California, Florida, Nevada and Arizona are the leaders in the slanderous race. There has also been a decline in 34 states. Except for the big four the increase in other states has been minimal. The big four with have been in the doldrums for quite a number of years.

The early years of the new century saw frenetic activity in the housing market. There was a great demand for loans. To satisfy all, risky loans were doled out willy-nilly. But during this time Utah had been relatively flat and staid. It was only from 2004 that some flutter took place in sub-prime lending but it was never much to sing about. The job market was also upbeat. People did not run out of funds and as the economy attracted more job seekers from outside more buyers were available. Another factor behind the sunshine is the relatively high valuation of property. This meant troubled borrowers would get some equity left over even after paying their dues, and start life anew. Of late however property rates have started to fall making it difficult to benefit from a quick sell off.