Low delinquency rates bode well for homeowners and lenders; however risks still exist that put more people in jeopardy of foreclosure.
Top 5 states with most serious delinquencies are on the East Coast In August, the states with the most serious delinquencies, which are defined as 90 or more days past due, were New York (3.1 percent), New Jersey (2.9 percent), Mississippi (2.9 percent), Louisiana (2.7 percent) and Florida (2.5 percent), according to CoreLogic’s latest Loan Performance Insights report.
Top 5 states with highest serious mortgage delinquencies State Percentage of delinquencies Foreclosures Source: ATTOM Data Solutions New York 3.1% 12,000 New Jersey 2.9% 15,000 Mississippi 2.9% 773 Louisiana 2.7% 2,073 Florida 2.5% 19,000 “Because of extremely long foreclosure processes in those states, exacerbated by delays because of questionable mortgage documents, there are still a relatively high percentage of delinquent homeowners who have been delinquent for years but not yet foreclosed on — or whom got into a loan modification to avoid foreclosure but have fallen back into foreclosure,” Blomquist says.
Louisiana and Mississippi also face a tough housing market, which is more a product of lagging home price growth in the wake of the housing crisis.
Almost 21 percent of Louisiana homes and 23 percent of Mississippi homes are underwater, according to ATTOM.
That compares with the national average rate of 9 percent.
Income inequality topped the national average in Florida, Louisiana and New York.
We saw during housing crisis that one spouse wouldn’t tell the other that they were in trouble,” Gerecke says.
Some people were victims of frauds and scams – people are somewhat hesitant to ask for help and for good reasons.” For people who are drowning in debt or are facing financial trouble, seeking the help of a financial counselor is a good place to start, Gerecke points out.
This is especially true for people who are hesitant to contact their lenders for fear of foreclosure; generally the counselor can act as an intermediary.