NYC mortgage delinquencies up 74%
May 1, 2008
More New York City mortgage borrowers are behind in their payments than ever before.
According to a report by TransUnion.com, a credit and information management firm, the percentage of mortgage borrowers in the New York City area who were 60 or more days past due on payments reached 2.5% in the fourth quarter, the highest since 1992 and 15% over the previous quarter.
Compared with one year ago, the rise in the city’s delinquency rate is even more stark, up 74%. The national delinquency rate is expected to reach 4% by the end of the year, before starting to decline in 2009, the report says.
The delinquency rate climbed in all five boroughs, with the steepest hike coming in Staten Island, which rose more than 16% to 2.45% of mortgage holders. Brooklyn and Queens both rose nearly 12%.
The Bronx, Brooklyn and Queens all had 60-day delinquency rates higher than the national average—almost 3% of borrowers.
The 60-day past due delinquency is typically a benchmark to indicate the health of loans. “Once a consumer gets to that level, the probability of them ultimately being foreclosed on is very high,” says Keith Carson, a senior consultant in TransUnion’s financial services group.
Compared with one year ago, the rise in the city’s delinquency rate is even more stark, up 74%. The national delinquency rate is expected to reach 4% by the end of the year, before starting to decline in 2009, the report says.
The 918 new foreclosure auctions in the city in the first quarter were up 51% compared with the previous quarter, according to Propertyshark.com.
At the same time, mortgage debt in the city decreased in the fourth quarter over the previous one. All five boroughs saw a decline, with the sharpest drop coming in Manhattan; the average mortgage debt there fell 14%, to $465,860, the TransUnion report says. Lower mortgage debt is usually a sign that home prices have dropped.
Source: Crains
Related Articles
- NY foreclosures Down in 3rd Quarter
- Governor Paterson signs foreclosure bill
- Big Drop Is Seen in Real Estate Tax Revenues
- More New Yorkers going bankrupt
- NY Assembly OKs foreclosure moratorium
Comment on this article
