Sub-prime mortgage woes push new foreclosures to a record high

From the Associated Press

WASHINGTON – The number of homeowners receiving foreclosure notices hit a record high in the spring, driven by problems with sub-prime mortgages.

The Mortgage Bankers Association reported today that mortgage-holders starting the foreclosure process in the April-June quarter reached 0.65 percent, marking the third consecutive quarter that this figure has set an all-time high.

The delinquency rate, which tracks the number of people who are behind in their payments but have not yet entered the foreclosure process, was also up sharply during the spring, rising to 5.12 percent of all loans, up nearly three-fourths of a percentage point from the same period a year ago.