New highs for late mortgage payments
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Steve Chiotakis: The number of people late on mortgage payments is set to hit new highs. That’s the word today from a major credit reporting agency. With that, here’s Ashley Milne-Tyte.
Ashley Milne-Tyte: Transunion says the delinquency rate on mortgages shot up to nearly 4 percent in the third quarter. For years, the rate was around 2 percent.
The delinquency rate is the number of people who are at least two months behind on their mortgages. The credit bureau predicts that rate will be a lot higher by the end of 2009.
The main reason people are falling behind in their payments is adjustable rate mortgages. Many homeowners took on those mortgages at low rates a few years ago. Those rates are now re-setting — often at levels homeowners can’t afford.
The highest delinquency rates are in Florida, Nevada, California and Arizona.
I’m Ashley Mine-Tyte for Marketplace.
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