BiggerPockets Daily

Is Trouble Brewing? Six Million Americans Are LATE on Mortgage Payments

Feb 6, 2025

A shocking statistic reveals over six million homeowners are late on mortgage payments, raising concerns about a looming housing crisis. Rising interest rates and soaring insurance costs are intensifying financial strain for many. Some homeowners are even opting out of insurance altogether. States with high delinquency rates are explored, along with the alarming trend of skyrocketing property taxes surpassing mortgage payments. Insights into investor opportunities amidst rising mortgage delinquencies and strategies for identifying distressed properties add a layer of urgency to this critical situation.

17:08

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Over 6 million Americans are late on their mortgage payments, primarily due to rising inflation and surging insurance costs.

The current increase in mortgage delinquencies creates opportunities for real estate investors to negotiate and secure distressed properties before foreclosure.

Deep dives

Rising Mortgage Delinquencies

A significant number of homeowners are falling behind on mortgage payments, with over 6 million Americans affected. Mississippi leads the nation with a 15% delinquency rate, exacerbated by low household incomes and an affordable housing market. Illinois and Delaware also report high rates of mortgage struggles, highlighting that economic pressure is not confined to one region. These trends suggest potential market instability, making it crucial for real estate investors to monitor these developments closely.

Intro

4min

The Strain of Rising Costs on Homeowners

2min

The Ripple Effect of Rising Insurance Costs and Defaults on Property Values

2min

Current Mortgage Concerns and Uninsured Homes

4min

Mortgage Delinquencies: Impact on Homeowners and Investor Opportunities

3min

Millions of Americans are falling behind on their mortgage payments, signaling potential trouble for the housing market. A new study from Deeds.com, based on U.S. Census Bureau data, reveals that over 6 million homeowners are late on their mortgage payments, while 9.4 million renters are struggling to pay rent. Rising interest rates, soaring insurance costs, and inflation outpacing wages are pushing more people to the brink of financial distress.

In this episode, we break down which states are seeing the highest delinquency rates, why homeowners are forgoing insurance, and how skyrocketing property taxes and insurance premiums are now surpassing mortgage payments in many areas. We also discuss what this means for real estate investors—whether foreclosures are on the horizon, how to identify distressed properties before they hit the market, and strategies for negotiating deals with struggling homeowners.

Is another housing crisis brewing? Tune in to find out what’s happening behind the numbers and how you can prepare for the shifting real estate landscape.

Subscribe to the BiggerPockets Channel for the best real estate investing education online!

Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com

Learn more about your ad choices. Visit megaphone.fm/adchoices

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.

BiggerPockets Daily

Is Trouble Brewing? Six Million Americans Are LATE on Mortgage Payments

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Rising Mortgage Delinquencies

Impact of Inflation and Costs

Opportunities for Investors Amidst Challenges

Remember Everything You Learn from Podcasts