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Realtor.com warns of a housing crisis on the horizon for 10 US cities with the highest number of delinquent FHA loans. In August, nearly 17.4% of the 8 million FHA-backed mortgages were delinquent while 11.2% of these mortgages were seriously delinquent. FHA mortgages are aimed at borrowers who may be first-time, minority, or lower-income, Realtor.com says. Atlanta’s metro region has the most delinquent mortgages—53,000 to be exact. Houston has the second highest number of delinquent FHA loans, followed by Chicago, Washington, DC, and Dallas. The same areas where foreclosures hit hardest during the Great Recession are the same neighborhoods at risk now.

The Houston metropolitan area had the second-highest number of delinquent FHA loans. It was followed by Chicago; Washington, DC; Dallas; Riverside, CA; Baltimore; San Antonio, TX; Orlando, FL; and Tampa, FL.

The late payments aren't surprising as the nation had an 8.4% unemployment rate in August, according to the U.S. Bureau of Labor Statistics. Those working in food service, retail and tourism, and the hospitality and leisure industries suffered some of the highest job losses.

As of Sept. 22, roughly 3.6 million homeowners, making up about 6.8% of mortgages, were enrolled in forbearance programs as a result of the pandemic, according to Black Knight, a technology, data, and analytics company. That's down 7% from the prior week.

Communities of color could be the most affected by another foreclosure crisis.

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