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Research & the Economy


Distressed mortgages fall slightly from year-ago levels

The percentage of distressed mortgages in the Southeast declined in June 2011 on a year-over-year basis, according to a recent report from the Federal Reserve Bank of Atlanta. The quarterly Mortgage Delinquency and Foreclosure Trends series covers mortgage markets in the six states that make up the Sixth District.

About 16 percent of first lien mortgages were in some degree of distress in the second quarter, compared to roughly 17.4 percent the previous year. However, there is concern that the foreclosure process reviews may be contributing to the decline by delaying many foreclosure proceedings.

The southeastern states combined have a higher percentage of distressed mortgages than the nation as a whole, according to the report. Within the Sixth District, Florida continues to have the highest rate of distressed mortgages with more than 20 percent of first lien mortgages in some form of distress. That figure jumps to more than 50 percent for subprime mortgages.

At the other end of the spectrum, Tennessee has the lowest percentage of distressed mortgages. In the second quarter, 11 percent of all first lien mortgages were distressed, compared to more than 37 percent of subprime mortgages.

Be sure to see the full report for each state for more in-depth data on southeastern mortgage markets.