The South Florida Business Journal is reporting that mortgage delinquencies continue to plaque Florida and other states in the US. Although the Florida housing market has shown signs of recovery, Floridians are still struggling to pay their mortgages on time. At this time, Florida ranks 5th in delinquencies out of all 50 states and D.C.
According to the Mortgage Bankers Association, an estimated twenty-five percent (25%) of mortgages in Florida are delinquent. The severity ranges from homeowners that are one month behind on their home loans to others that are so severely delinquent they are nearing foreclosure.
There are other states aside from Florida that are dealing with high rates of delinquency. They include Nevada, Arizona, and California. Collectively, the 4 states comprise nearly forty-five (45%) of all foreclosures filed in the last quarter.
Why are mortgage delinquencies rising?
There isn’t a single explanation for the high rate of mortgage delinquencies. There’s hardly ever a single solution for anything. However, it’s no secret that job losses have planned a significant role in the the mortgage crisis we’re seeing. As the job losses continue to rise, so does the amount of people having trouble paying their mortgages.
While some assume that at the root of the present mortgage crisis are sub-prime, adjustable rate home loans, the reality is “prime fixed-rate loans continue to represent the largest share of foreclosures started and the biggest driver of the increase in foreclosures,” according to MBA.
