A new report indicates that the number of delinquent mortgage borrowers climbed in the second quarter. That's people who have missed at least one payment, according to the Mortgage Bankers Association (MBA).

There has been a steady improvement in the past couple of years, but this slight increase of 0.12 percentage points in the delinquency rate to bring the seasonally adjusted rate to 8.44% of all loans outstanding as of the end of the second quarter, 2011 breaks that gradually improving trend.

However, it's not so bad. The MBA also reports that the number of loans that are delinquent more than 90 days has declined. It's those mortgages that are often moved into a repossession process.

So how bad are the early delinquencies? Often what can happen when borrowers are late for a short period of time is they can get back on track with their payments. Sometimes it's a matter of getting hit with an unexpected medical bill or a temporary cut in work hours.

The MBA believes that delinquencies are mirroring what we are seeing in the employment market.

"Mortgage loans that are one payment, or 30 days, past due are very much driven by changes in the labor market, and the increase in these delinquencies clearly reflects the deterioration we saw in the labor market during the second quarter. Weekly first-time claims for unemployment insurance started the quarter at 385,000 but finished the quarter at 432,000. The unemployment rate started the quarter at 8.8 percent but climbed to 9.2 percent by the end of the quarter," said Jay Brinkmann, MBA's Chief Economist in a statement to the press.

Still, there's a silver lining. Foreclosures are back to levels that we saw in 2007. Not as many foreclosures, as in recent previous years, are being initiated, so more borrowers are finding ways to keep their homes.

"Looking across states, foreclosures continued to be highly concentrated in just a few states, with five states accounting for 52% of the foreclosure inventory in the second quarter. The single biggest factor determining whether or not a state has a large backlog of foreclosures is whether the state has a judicial foreclosure system, meaning whether or not a foreclosure needs to go through the courts. Of the 9 states whose percentage of loans in foreclosure is higher than the national average, only one, Nevada, does not have a judicial system of foreclosure."

There is more good news on the mortgage front. Loans since 2007 are performing better. The time period of 2005 to 2007 represented only 30% of all mortgages. But that same time period accounted for 65% of seriously delinquent loans.

ForeclosureResponse.org concurs in its findings and reports that serious delinquency rates for mortgages are stabilizing across the largest 100 U.S. metropolitan areas. The organization is quick to point out that our current levels have reached historic highs.

Published: August 26, 2011

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Phoebe Chongchua is an award-winning journalist, an author, customer service trainer/speaker, and founder of Setting the Service Standard, a customer service training and consulting program offered by Live Fit Enterprises (LFE) based in San Diego, California. She is the publisher of Live Fit Magazine, an online publication that features information on real estate/finance, physical fitness, travel, and philanthropy. Her company, LFE, specializes in media services including marketing, PR, writing, commercials, corporate videos, customer service training, and keynotes & seminars. Visit her magazine website: www.LiveFitMagazine.com. Phoebe's articles, feature stories, and columns appear in various publications including The Coast News, Del Mar Village Voice, Rancho Santa Fe Review, and Today's Local News in San Diego, as well as numerous Internet sites. She holds a California real estate license. Phoebe worked for KGTV/10News in San Diego as a Newscaster, Reporter and Community Affairs Specialist for more than a decade. Phoebe's writing is also featured in Donald Trump's book: The Best Real Estate Advice I Ever Received and The Complete Idiot’s Guide to Buying Foreclosures. She is the author of If the Trash Stinks, TAKE IT OUT! 14 Worriless Principles for Your Success. Contact Phoebe at (858) 259-3646 or . Visit PhoebeChongchua.com for more information.