Can You Guess What Percentage of Mortgages Are Still Paid On-Time?

Real Estate Agent with Houlihan Lawrence

Can You Guess What Percentage Of Mortgages Are Still Paid On-Time?

Posted: 03 Mar 2009 08:00 AM PST

Mortgages 60 days past due, as reported by TransUnionMortgage delinquencies are on the rise nationwide, but the news may not be as bad as it appears at first glance.

Using anonymous data from its national credit database, TransUnion reports that 4.58 percent of American homeowners were at least 60 days past due on mortgage payments last quarter.

Comparing the statistic to the data from a year ago, the credit reporting agency goes on to say that mortgage delinquencies are up 53 percent.

Although fair, the comparison carries a distinct, negative connotation because if we flip the data to its positive, the statistics don't seem nearly as menacing.

Consider: In the last quarter of 2008, 4.58 percent of homeowners were delinquent on their respective mortgages. The positive sign, therefore, is that 95.42 percent of homeowners were not delinquent on their home loans.

Furthermore, in looking at TransUnion's data for the 5 largest states in the Union, it's clear that the national delinquency rate is being skewed by California and Florida. New York and Texas, for example, exhibit delinquency rates below the national 4.58 percent marker.

North Dakota's delinquency rate hovers near 1 percent.

Headlines are designed to attract eyeballs and nothing else. To get the complete story, therefore -- the real story -- it never hurts to dig a little deeper into the facts.

(Image courtesy: TransUnion)

Michelle Finnamore
Toronto GTA, Alliston, Newmarket - Vaughan, ON
Preparing your property for sale

Excellent post. You are absolutely right stating the media is intent on creating attention grabbing headlines to sell more of their product. The headline about how many people were paying their mortgages on time wouldn't have quite the response as the first one does.

I remember in the downturn in the 80's there was 13 % unemployment ( which really is a lot). I was in sales at the time and my boss told me to go out and sell to the 87% that were working. It was sound advice then and it is sound advice now. business as usual. Don't read the paper or watch the news. Keep positive. Surround yourself with positive people. As you say, there are certain markets which are in trouble, but there are a whole lot more that are not in as serious a predicament.

Mar 03, 2009 06:26 AM
Kathleen Frawley
Keller Williams 916 730-4404 Elk Grove, Wilton, Folsom, Sacramento - Wilton, CA
South County Sacramento, 916 730 4404

Excellent information!  It never occured to me to "run the numbers" for myself.  Darn Media...I get sucked in all the time.

Mar 03, 2009 10:13 PM
Lisa Long
Heather Roda Broker - Paso Robles, CA

Well when you put it that way it sounds pretty good. You know how the media loves its doom and gloom! Those are great numbers, thank you for sharing!

Mar 04, 2009 06:24 AM