Mortgage Delinquency Rate Falls to 20-Year Low
The latest CoreLogic monthly Loan Performance Insights Reports revealed Americans are better at making their mortgage payments on time than they have been in the past two decades. A delinquent mortgage is defined as a mortgage that has been past due for 30 days or more. As of April 2019, the national mortgage delinquency rate dropped to 3.6%.
Although the national mortgage delinquency rate has declined overall, some metros have actually experienced an increase in delinquency. Based on CoreLogic’s report, 10 metropolitan areas nationwide saw an increase in serious delinquency, or mortgages that are 90 days or more past due, including homes in foreclosure. Specifically, regions were impacted by last year’s weather-related natural disasters like the wildfires in California and the hurricanes across the Southeast. In Chico, CA, specifically, a metro impacted by the California Camp Fire, the mortgage delinquency rate was 21% higher in April 2019 than in April 2018.
If you are in a situation where you can’t afford your mortgage payment, you do have options. The Consumer Financial Protection Bureau (CFPB) advises you call your mortgage servicer first.
Be prepared to explain the situation, specifically:
- Why you are unable to make your payment
- Whether the problem is temporary or permanent
- Details about your income, expenses, and savings
- If you are in the military and have received permanent change of station (PCS) orders
Your servicer may differ from the lender who issued your loan. Check your mortgage statement to make sure you are contacting the correct office. Your servicer may recommend you refinance your loan, get a loan modification, or get forbearance. Mortgage servicers have programs designed specifically to prevent foreclosure and may work with you to work out a repayment plan, depending on the situation. If you are unable to make your mortgage payment because you are facing a hardship related to a natural disaster and live in a region that has been declared a disaster zone, you may be entitled to some extra time or mortgage assistance from the government depending on the particular situation.
The Department of Housing and Urban Development (HUD) also staffs housing counselors to work with homeowners to avoid foreclosure. You can find a counselor on their website or call the HOPE™ Hotline, 24 hours a day, seven days a week, at (888) 995-HOPE (4673).
Even if you are not struggling to make a mortgage payment, you could still save money on your monthly payment through a refinance. Mortgage rates are near a historical low and are expected to stay low through the end of the year. You can estimate your refinance mortgage payment using the mortgage calculators on our website.
Sources: Consumer Financial Protection Bureau, HousingWire