BiggerPockets Daily Is Trouble Brewing? Six Million Americans Are LATE on Mortgage Payments
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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.
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Mortgage and Rent Payment Delinquencies
- Over 6 million Americans are behind on mortgage payments, according to a Deeds.com study based on Census data.
- Another 9.4 million renters struggle with rent payments, indicating financial strain.
Market Cycles and Opportunities
- Real estate market cycles involve delinquencies leading to foreclosures, which create investment opportunities and falling prices.
- Understanding these cycles helps investors anticipate and prepare for market shifts.
States with High Delinquency Rates
- Mississippi has the highest mortgage delinquency rate (15%), followed by Illinois (13.9%) and Delaware (14%).
- Mississippi's high rate isn't unusual due to its affordable housing and low median income.