The first quarter 2011 survey by the Mortgage Banker’s Association shows that Alaska has the lowest level of residential foreclosures started this year, and the lowest level of total foreclosure inventory in the country.
For the last two years in Alaska the percent of foreclosures started in a given quarter were about 0.5% of the total number of mortgages outstanding. This is about half the national average which was just under 1% at the end of March 2011. This is an improvement for the U.S. from one year ago when the rate of new foreclosure starts was 1.5%.
The total inventory of foreclosures in process is only 0.8% in Alaska, while the country has a much larger lingering foreclosure inventory at 3.4% due to higher rates during the recession and longer resolution times.
Subprime lending to traditionally non-qualified borrowers was a large contributing factor to the national mortgage problems. The rate of delinquencies and foreclosures on subprime loans is significantly higher. However, Alaska is in a far better position and again leads the nation in this important category. Subprime foreclosures in Alaska are at 4.5% while the national average is more than three times higher at 14.7% and the second lowest state is Missouri at 7%.
Alaska’s subprime delinquency rate is 10.5% compared to the national average of 22.9%. Delinquent loans are more than 30 days past due, but not yet in foreclosure. Alaska’s rate is more than 6% lower than the second place state Colorado at 16.8%.
Alaska does trail North and South Dakota in the level of overall delinquent loans, ranking third best out of 50 states. Alaska’s delinquency rate is 4%, while the U.S. average is 7.8%.
Comments