Have you stopped making Mortgage Payments?

Mortgage Delinquencies are on the rise. Have you stopped making Mortgage Payments?

May 2015 saw the largest month-over-month increase in delinquent residential mortgages for any May since 2009 and the largest month-over-month increase for any month since November 2014, according to Black Knight Financial Services’ May 2015 Mortgage Monitor released on Monday.

Have you stopped paying your mortgage? If so, it is time that you learned about your rights. What mortgage modification programs do you qualify for? How long will it take to foreclose on your home? What is a deed-in-lieu of foreclosure? What is a short sale? What should you do based on your circumstances? Give Jonathan a call to come in for a consultation. He will help you devise a personal action plan to handle your delinquent mortgage.

Delinquent residential mortgages, defined as those 30 days or more overdue but not in foreclosure, jumped by 4 percent from April to May up to about 2.5 million, according to Black Knight. The delinquency rate has increased month-over-month in seven of the last 10 Mays (2006, 2008, and 2013 were the only months that saw declines); the May 2015 increase was the largest since May 2009, when it jumped by 4.5 percent.

May 2015’s increase was also the largest month-over-month spike for any month since it jumped by 12 percent in November 2014. That month, just like May 2015, ended on a Sunday. According to Black Knight, months that end on a Sunday historically trigger increases in delinquency rates; the top five month-over-month increases in the last seven years have all come on months that ended on a Sunday, Black Knight reported.

Despite the frequent month-over-month delinquency rate increases in the month of May over the last few years, the delinquency rate declined by 12 percent year-over-year in May 2015, which calculated to about 326,000 fewer mortgages.

May’s month-over-month rise in delinquencies was nearly an across-the-board increase through all product types, loan vintages, and credit score groups, according to Black Knight. The largest increase in delinquencies was seen among Federal Housing Administration/Veterans Affairs (FHA/VA) loans at 7.6 percent. The delinquency increase in FHA/VA loans increase was most more predominant loans with a post-crisis vintage (2009 through 2014), though the delinquency rate was consistent across loans with all LTV levels, according to Black Knight.

The delinquency rate increased month-over-month in May for option/adjustable rate mortgage (ARM) loans (5.2 percent), subprime mortgage loans (2.3 percent), Alt-A (between prime and subprime) loans (2.1 percent), FHA/VA loans (7.6 percent), and agency prime loans (2.8 percent). The one category that saw a month-over-month decline in delinquency rate was non-agency jumbo prime loans (minus 0.8 percent), according to Black Knight.

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