Despite all the hand-wringing and attempts to contain the foreclosure plague, the problem still spread during the first three months of 2009, as the number of foreclosure actions started hit a record high, according to a quarterly report. More than 616,000 homeowners were hit with foreclosure actions in the first 3 months of the year, the Mortgage Bankers Association reports.

The National Delinquency Survey released Thursday, May 28, 2009 by the Mortgage Bankers Association (MBA), reported the largest quarter-over-quarter increase in foreclosure starts since it began keeping records in 1972. Lenders initiated foreclosures on 1.37% of all first mortgages during the quarter, a 27% increase from the 1.08% rate during the last three months of 2008 and a 36% rise from the first quarter of 2008. All told, more than 616,000 mortgages were hit with foreclosure actions.

Delinquencies, the stage in which borrowers have fallen behind on payments but have not yet received foreclosure notices, also hit record highs, with the seasonally adjusted rate at 9.12% of all loans, up from 7.88% last quarter. And it looks like that pace may continue to increase. There has been a big jump in the number of loans that are 90-days or more overdue, which is a very bad sign since those delinquencies often progress into foreclosure starts. The number of loans 90 days past due rose to 3.39% of all loans, up from 3% a quarter earlier and is more than double the 1.56% level of 12 months ago. Many seriously delinquent mortgage borrowers have already given up and moved out of their homes, and that these homes constitute a large share of all foreclosures.

Regionally, the biggest contributors to the record foreclosure rates are the so-called "sand states," California, Florida, Arizona and Nevada. These four, which represent less than 18% of the nation's population, account for 46% of foreclosure starts. More than 10% of all mortgages in Florida are in foreclosure. MBA's forecast, a view now shared by the Federal Reserve and others, is that the unemployment rate will not hit its peak until mid-2010. Since changes in mortgage performance lag changes in the level of employment, it is unlikely we will see much of an improvement until after that.

By all means, don’t wait any longer. If you are facing the prospect of foreclosure, fill out the contact form on the right and Foreclosure Shield will immediately start the process of saving your home today.