Bad Mortgage Tally Could Jump Next Year

A TransUnion report says delinquency pain will increase in 2009.

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While this year has been painful enough, 2009 is expected to be even worse for mortgage delinquencies, according to a recent report.

Adjustable-rate mortgages made during the housing boom are projected to trigger a surge in the number of consumers that fall behind on their home loans next year.

That’s according to a report in The Wall Street Journal about research conducted by TransUnion, a credit bureau.

From The Wall Street Journal:

TransUnion LLC, which analyzed about 27 million consumer records in its database, predicted that the proportion of consumers with mortgages that are 60 days or more past-due will hit 7.17% in the fourth quarter of 2009.

That would be the highest level reached since the Chicago credit bureau -- which is releasing the data on Tuesday -- first started tracking these statistics in 1992. It compares with an expected delinquency rate of 4.67% at the end of 2008.

Mortgage delinquencies aren’t expected to peak until the early part of 2010, The Wall Street Journal reported.

Wall Street

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