Serious mortgage delinquencies are on the rise as homeowner stress spreads
The number of mortgages seriously past due or in foreclosure reached the highest level since 2022, a sign that more homeowners are facing prolonged financial stress.
As of January, some 878,000 home loans were more than 90 days past due or in foreclosure, according to ICE Mortgage Technology, a figure that’s risen 25% in the last four months. Much of the increase comes from FHA loans, which are most often used by homebuyers with moderate credit scores and limited down payment savings.
The uptick in seriously past-due loans doesn’t necessarily mean that more homeowners are defaulting. The number of new loans that have turned seriously delinquent in recent months has been relatively flat, according to the report. Rather, more homeowners in arrears are staying there by failing to “cure” their delinquencies through steps such as catching up on payments, modifying their loans, or reaching a forbearance agreement with their lenders.
“These dynamics bear watching in the coming months, as default activity continues to trend off recent record lows,” Andy Walden, head of mortgage and housing market research at ICE, said in a statement.
https://finance.yahoo.com/news/serious-mortgage-delinquencies-are-on-the-rise-as-homeowner-stress-spreads-201257857.html
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