With the mortgage delinquency rate rising in all 50 states, personal finance website WalletHub released its new report on the states where mortgage delinquencies are rising the most, to show where home loans have become less affordable since the fourth quarter. quarter of 2023 and the first quarter of 2024.
“Being delinquent on a mortgage is very bad for your credit score, and late payments stay on your credit report for seven years,” the WalletHub report says. “However, payments are only reported to the credit bureaus as delinquent once they are 30 days late, so the ideal is to get back on track as quickly as possible after a late payment.”
There will always be some mortgage delinquencies, but when the delinquency rate increases statewide, it may indicate that the state’s economy is struggling. To highlight the states where people are having the most trouble making their mortgage payments, as well as the areas where borrowers are most on track, WalletHub analyzed data from homeowner users from the fourth quarter of 2023 to the first quarter of 2024.
“If you are behind on a mortgage debt, you typically have until the debt is 30 days past due (meaning you have missed two payments) to catch up. After that, the lender will report the delinquency to the credit bureaus, which will damage your credit score. Therefore, it is important to try to catch up on your debt as quickly as possible. If you are having financial difficulties that are preventing you from paying, ask your lender if they will allow you a temporary forbearance until you get back on your feet, which can prevent you from being reported as delinquent,” said Cassandra Happe, an analyst at WalletHub.
State: (1) Vermont
Proportion of non-performing mortgage loans IQ 2024: 7.10%
Change in delinquent mortgage loans (IQ 2024 vs IVQ 2023): 23.87%
State: (2) Nebraska
Proportion of non-performing mortgage loans IQ 2024: 6.00%
Change in delinquent mortgage loans (IQ 2024 vs IVQ 2023): 22.81%
State: (3) Rhode Island
Proportion of non-performing mortgage loans IQ 2024: 5.31%
Change in delinquent mortgage loans (IQ 2024 vs IVQ 2023): 19.69%
State: (4) Utah
Proportion of non-performing mortgage loans IQ 2024: 4.62%
Change in delinquent mortgage loans (IQ 2024 vs IVQ 2023): 19.63%
State: (5) Idaho
Proportion of non-performing mortgage loans IQ 2024: 5.28%
Change in delinquent mortgage loans (IQ 2024 vs IVQ 2023): 19.21%
In contrast:
State: (46) Wyoming
Proportion of non-performing mortgage loans IQ 2024: 6.25%
Change in delinquent mortgage loans (IQ 2024 vs IVQ 2023): 6.25%
State: (47) Alaska
Proportion of non-performing mortgage loans IQ 2024: 4.96%
Change in delinquent mortgage loans (IQ 2024 vs IVQ 2023): 6.18%
State: (48) Indiana
Proportion of non-performing mortgage loans IQ 2024: 7.40%
Change in delinquent mortgage loans (IQ 2024 vs IVQ 2023): 6.09%
State: (49) South Dakota
Proportion of non-performing mortgage loans IQ 2024: 7.35%
Change in delinquent mortgage loans (IQ 2024 vs IVQ 2023): 5.13%
State: (50) New Hampshire
Proportion of non-performing mortgage loans IQ 2024: 5.21%
Change in delinquent mortgage loans (IQ 2024 vs IVQ 2023): 4.68%
To see the full report and its methodology, go here.
The Vermont case
WallatHub notes that Vermont is the state where mortgage debt delinquencies are increasing the most. About 24% more mortgages in the state were delinquent in the first quarter of 2024 than in the fourth quarter of 2023, the largest increase in the country. In total, Vermonters are delinquent on 7.1% of their mortgages, which is the 14th highest delinquency rate.
In addition to having a large increase in mortgage delinquencies recently, Vermont also ranks high when it comes to the proportion of people with troubled credit accounts, meaning they have been allowed to delay payments due to financial hardship. This shows that residents are having trouble paying off all different types of debt.
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