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May 12, 2010

NUMBER OF DELINQUENT MORTGAGE PAYMENTS DOWN
Nationally, the number of delinquent mortgage payments was down during the first quarter of this year. This number has not gone down in over three years. The number of homeowners who were delinquent by two months came down from 6.89 % for the 4th quarter of 2009 to 6.77 %. This is a positive sign, despite the fact that the initial quarter number does represent a considerable increase from the first quarter of 2009, when the rate of delinquent payments was 5.22 %.

However, while it cannot be viewed as a trend, the expectation is that things will keep showing improvement. The expectation is for a continuation of the downward move during the present quarter with the remainder of the year to show some stabilization.

The delinquency rate for California is just over 10.6 %, due to the fact that California was among the states that experienced the worst effects of the housing market tumble.

The delinquency rate is determined by the number of those who are late by sixty days. This number is thought to be an indication of probable foreclosure due to the difficulty that a person who is financially distressed would experience in order to pay the three months that would make their mortgage currently paid up.

Nationally, the projection is for the number of delinquencies to be approximately 6.3 % by the end of 2010. During the first quarter of next year, delinquent payments should be fewer, and by the end of 2011 there should be a marked decrease in the number of delinquent payments, possibly bringing the rate down to nearly 5 %.

Over the years, the rate of delinquent payments has ranged between 1 ½ to 2 %.