And This Is During The Good Times
A story at Newsday.com set out to establish that home owners in booming markets are paying their mortgages on time. But the national comparisons don't look so good.
"In Texas, 6.8 percent of homeowners were behind on their loan payments. In Mississippi, 8.8 percent of owners were delinquent. In Louisiana, 7.2 percent paid late. Georgia 6.3%, Tennessee 6.4% and West Virginia 6.6%."
And how about the rapidly growing subprime market? 11 percent of subprime borrowers are behind on payments. "Subprime borrowers were 7 1/2 times more likely to be 90 days delinquent, and 8 times more likely to be in foreclosure proceedings. (In) West Virginia..more than 21 percent of (subprime) homeowners were behind." But the worst group is FHA. "Nearly 13.2 percent of all FHA borrowers were delinquent at the end of 2004."
The theme is that if a region is under the national average, 4.6%, things are fine. But this writer senses the public is too comfortable with debt and delinquency. Here are the 'good' numbers. "Delinquency rates in high-cost New York, New Jersey and Florida were..around 4%, California, 2.04%."