Uptick in Mortgage Delinquency Attributed in Part to Natural Disasters in 2017

CoreLogic reports that the majority of mortgage loan payments in early-stage delinquency, 30 to 59 days late, increased 0.1 percent month-over-month in December 2017 to 2.3 percent.

Real estate consultant Jack McCabe says that, “We see this happen every time there’s a natural disaster. From storms and fires, people lose their jobs, they lose their houses, they lose their records. In many cases they don’t have a source of income for a period of months to be making their monthly mortgage payments, insurance, and taxes. The bank still wants to be paid even if you’re not able to live in your dwelling or you’ve lost your job," Realtor.com reports.

The percentage of homes in foreclosure kept up a monthslong run at their lowest rate in a decade, but more homeowners were late making their mortgage payments at the end of last year—and the recent spate of hurricanes and wildfires is likely to blame. Many affected homeowners in these areas may simply be waiting on insurance payments to help them cover their costs, says McCabe. Or they may be in the process of taking their insurers to court for rejected or smaller-than-anticipated claims.

Read more