How many mortgage borrowers are REALLY past due?
Mortgage delinquencies are on the rise nationwide, but the news may not be as bad as it appears at first glance.
Using anonymous data from its national credit database, TransUnion reports that 4.58 percent of American homeowners were at least 60 days past due on mortgage payments last quarter.
Comparing the statistic to the data from a year ago, the credit reporting agency goes on to say that mortgage delinquencies are up 53 percent.
Although fair, the comparison carries a distinct, negative connotation because if we flip the data to its positive, the statistics don’t seem nearly as menacing.
Consider: In the last quarter of 2008, 4.58 percent of homeowners were delinquent on their respective mortgages. The positive sign, therefore, is that 95.42 percent of homeowners were not delinquent on their home loans.
Furthermore, in looking at TransUnion’s data for the 5 largest states in the Union, it’s clear that the national delinquency rate is being skewed by California and Florida. New York and Texas, for example, exhibit delinquency rates below the national 4.58 percent marker.
North Dakota’s delinquency rate hovers near 1 percent.
Headlines are designed to attract eyeballs and nothing else. To get the complete story, therefore — the real story — it never hurts to dig a little deeper into the facts.
(Image courtesy: TransUnion)
Posted In
Tags: Mortgage Delinquencies
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Nancy Hoffman
I”ve never met a real estate agent who had a firm grasp on reality when it comes to the state of over-inflated real estate, toxic mortgages, and the incredibly devastating impact this combination of factors is having on the US economy. With all due respect, you’re right about digging deeper. But it doesn’t sound as if you’ve dug very deep at all if you’re actually able to put any kind of positive spin on the devastation that is currently sweeping this country.
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Ginger Wilcox
Nancy,
I think the market stats that I report weekly are firmly gripped reality. If you take the opportunity to read them, you will find that I give the grim truth. The real estate market sucks for most home sellers right now. There is no question- our economic situation is terrible. The above (guest) post is factual, it is not disputing what is happening across the country BUT 95+% of mortgage holders are current. The situation is dire for many individuals and it is terribly sad, but we also have to realize that the majority of homeowners are paying their mortgage payments on time. -
Linsey
I think the guest post certainly is accurate in the assessment and I think right on the money in pointing out the media’s tendency to utilize the numbers in such a way that it creates the sensationalism that draws readership, however as a California real estate broker I think we must acknowledge something critical.
Clearly, the delinquency numbers are swayed by the California numbers, but the impact on the country is far reaching. I recently wrote about report that CNN did regarding the top 10 worst housing markets in the country. When 8 out of 10 of them are in this state, and this state is one of the top world economies, the impact on the national economy can not be overstated.
North Dakota may be enjoying a low delinquency rate, but the result of the poor housing market in California is reaching them all the same.
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