According to a report released by the Mortgage Bankers Association, the number of homes in some stage of foreclosure has reached a record of 1.2 million for the second quarter of the year. In addition, the delinquency rate was also at an all time high, with 2.9 million homeowners missing their mortgage payments.

For the group, the foreclosure numbers is being dictated by the states hit hardest by the subprime mess. They include California, Nevada and Florida. Even if the foreclosure situations in states like Massachusetts, Maryland and Texas have improved considerably during the same period, they were still overwhelmed by the increases.

Subsequently, 39 percent of all foreclosure filings during the second quarter recorded came from Florida and California. Other states that contributed considerably include Michigan, Nevada, Rhode Island, Ohio, Arizona and Indiana. These states have foreclosure rates that are above the nation’s average.

Aside from this, the subprime mortgages also accounted for 36 percent of the total foreclosure filings. This figure is quite depressing considering that subprime loans represent just 6 percent of the total outstanding loans. Compared to fixed rate mortgages, the figure for the subprime loans is nearly 20 times more.

To make matters worse, it would seem that the subprime loans are not the only ones defaulting. There was also a significant increase in delinquency rate for the prime loans in the second quarter – 3.9 percent compared to 3.7 percent of the first quarter and 2.7 percent from last year.

For experts and analysts, any stabilization experienced in the subprime market will still not herald the end of the foreclosure crisis since the prime loans are starting to catch up. This only means that the problem is not only confined to the credit industry and is probably fueled by weak economic conditions.

The only good news that can be observed from the report is the slowing down of home price decline in the past months. With home prices stabilizing a bit, delinquencies might level off as well.