This Is the State Where the Most People Face Foreclosure

By Douglas A. McIntyre Published Sep 15, 7:30AM EDT

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This Is the State Where the Most People Face Foreclosure — © Justin Sullivan/Getty Images

The housing market has been unusually hot in the past year. Home prices have risen in double digits in many cities and states. In some cases, the increases are over 25%. Among the contributing factors are low mortgage rates. These make houses more affordable, particularly for people who want to stretch their budgets. Another is the extent to which people have relocated from expensive cities on the coasts to smaller cities with lower housing prices and a perceived better quality of life. Additionally, this relocation trend has been boosted by the ability to work from home, triggered by the COVID-19 pandemic. None of these factors has prevented the fact that some Americans cannot afford their mortgages and sit on the edge of foreclosure.
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The CoreLogic Loan Performance Insights report was released recently. The latest version covers mortgage activity through June and states:

The report is published monthly with coverage at the national, state and Core Based Statistical Area (CBSA)/Metro level and includes transition rates between states of delinquency and separate breakouts for 120+ day delinquency.

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One factor has helped people with troubled loans stay in their homes longer than usual. This is the federal foreclosure moratorium. CoreLogic found that many people do not understand the provisions of these laws.

Loans in the most trouble are deemed by CoreLogic as having a “serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure.”

Based on this measure, the state with the highest percentage of seriously delinquent mortgages is New York at 5.1%. It is followed by two southern states: Louisiana (5.0%) and Mississippi (4.4%).

How long can people with troubled mortgages stay in their homes? U.S. Department of Housing and Urban Development recently stated about foreclosure evictions:

The Federal Housing Administration (FHA) on July 30, 2021, announced an extension of its moratorium on evictions for foreclosed borrowers and their occupants through September 30, 2021, and noted the expiration of the foreclosure moratorium on July 31, 2021.

This only applies to people with federally backed loans.

Click here to see in which state people are most likely to lose their homes.
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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.