After the housing crisis that was at its worst in 2008, the nation’s real estate and mortgage markets took years to recover. These days, real estate prices are high and mortgage rates are low. One word we don’t hear hardly at all anymore—at least not when compared to a decade ago—is “foreclosure.” It’s the worst “F” word in the mortgage lending industry and the worst form of mortgage delinquency. We’re glad to know it is much less of a problem than it once was. Still, it’s always smart to check mortgage delinquency rates periodically.

Studying Delinquency Rates

CoreLogic recently released its latest Loan Performance Insight Report, which covers a lot of different data relating to mortgage loans in the United States. The report featured a section about mortgage delinquency rates through November 2019. There are four delinquency rates that they measure:

Early-State Delinquency Rate – The percentage of current mortgage loans with delinquent payments in the range of 30 to 59 days past due.

Mid-Stage Delinquency Rate – The percentage of current mortgage loans with delinquent payments in the range of 60 to 89 days past due.

Serious Delinquency Rate – The percentage of current mortgage loans with delinquent payments which are 90 days or more past due.

Foreclosure Rate – The percentage of mortgage loans currently in the foreclosure process.

The final numbers revealed in the report show that overall, 3.9% of mortgages in the U.S. were in some stage of delinquency as of November 2019. This is a 0.1% drop when compared with the 4% overall delinquency rate in November 2018. In fact, the rate is at its lowest overall for any November in the past 20 years.

“Overall delinquency rates remain at 20-year lows spurred on by tight underwriting standards following the onset of the Great Recession, a robust and accelerating economic cycle over the past five years and the increasing underlying health of the housing economy,” says Frank Martell, president and CEO of CoreLogic.”

California Mortgage Delinquency Rates

Now, let’s take a look at our home state of California, which is doing even better compared with the national averages. Here is some key data:

• Early- and Mid-Stage Delinquency Rate (30-89 days) – 2.4%

   (Down .1% from November 2018)

• Serious Delinquency Rate (90 days or more) – 0.6%

   (Down .1% from November 2019)

• Foreclosure Rate – 0.2%

   (No change from November 2018)

As a mortgage company, we never want to see any delinquent loans or houses getting foreclosed upon by the bank, but it is something that happens if the borrower can’t keep up with mortgage payments. Sometimes, things change in life and people can no longer afford to pay their loans. Or, they borrow more than they should and end up in a bad situation. Over-borrowing is much less of a problem before the Great Recession and the abundance of poorly regulated sub-prime loans.

The Value of Good Mortgage Guidance

Even if delinquency rates and foreclosure rates are down, you should always make wise decisions when getting a home loan. Understand how the principal and interest payments work, and of course make sure you can afford the payments. Work with a knowledgeable mortgage broker who will take the time to answer your questions, perform a thorough pre-approval and provide guidance throughout the mortgage process.

For home buyers throughout San Diego County and Southern California, you can count on the team at Transparent Mortgage to provide the guidance you need and the level of service you deserve. Let us help you make the right home loan decisions so that you don’t become another one of these statistics. Call us today at (619) 701-3906 or email me personally at beau@tspmortgage.com

Beau Hodson

Beau Hodson

About the Author Since 2003, Beau has been a mortgage professional and is a leading mortgage broker and lender in San Diego. As Founder and Senior Mortgage Advisor at Transparent Mortgage, he is truly committed to serving the needs of his clients and raising industry standards for integrity and transparency.