More Foreclosures This Year, But Fewer Mortgages Delinquent, Study Shows

By Stevie Duffin Updated on 9/25/2013

Not surprisingly, Florida tops the list of states with high mortgage delinquency rates, followed closely by Nevada.   Mississippi, New Jersey, and Georgia are next in line.  While these three states haven't received as much attention from the media, their inclusion on a list of states with comparatively high delinquency rates compiled by Lender Processing Services points out their role in a less publicized but still significant aspect of the housing crisis.

Mortgage delinquency rates aren't necessarily tied to foreclosure rates, but many, if not most, delinquent mortgages end up in default.  IN recent months, the media, as well as many economists and investors, have expressed greater concern over the current "underwater" status of many of America's homes.  Mortgage delinquency hasn't received as much air time.

Lender Processing Services, a mortgage data company, just released a report detailing delinquency figures for the past month and comparing them against delinquency figures recorded during 2010.  The numbers tell an interesting tale.

Just 8.8% of mortgages were delinquent in February, according to the study.  This figure shows a decrease from January, when closer to 1.2% more mortgages were delinquent.  And it's shockingly low when compared against numbers from February of 2010, when 18.4% more mortgages were delinquent.

This may be a sign that more homeowners are keeping up with their mortgages now than before.  It's more likely a sign that the foreclosure process is catching up with the inventory of delinquent homes.  Foreclosure presale inventories increased by 7.4% in the month of February.