A new report from the American Enterprise Institute found that 14.7 percent of the 7.6 million mortgages backed by the Federal Housing Administration were delinquent in May 2021. Additionally, 10.5 percent of those loans were delinquent by more than 90 days and at risk of going into default.
“If a modification is unable to address the delinquency, the next option is for the borrower to sell the home,” American Enterprise Institute Housing Center Director Edward Pinto and research fellow Tobias Peter write in the report, as shared by Inman. “Given the rapid level of home price appreciation, this alternative should allow many distressed owners to avoid foreclosure, pay off the mortgage, cover selling expenses and maintain one’s credit record.”
Regionally, a number of major markets are at increased risk of home foreclosures. Here in SoCal, San Bernardino and Ontario collectively land in the top 10, with 14.3 percent in delinquent loans, and 10.5 percent in the seriously delinquent/risk of default category.
Other areas at risk include:
Atlanta, Georgia (Sandy Springs, Alpharetta)
- Total of delinquent loans: 17.2 percent
- Total of seriously delinquent loans: 12.5 percent
- Percentage of loans backed by FHA: 17.4 percent
Houston, Texas (The Woodlands, Sugar Land)
- Total of delinquent loans: 17.4 percent
- Total of seriously delinquent loans: 12.8 percent
- Percentage of loans backed by FHA: 21 percent
Chicago, Illinois (Naperville, Evanston)
- Total of delinquent loans: 18.8 percent
- Total of seriously delinquent loans: 13.8 percent
- Percentage of loans backed by FHA: 19.3 percent
Dallas, Texas (Plano, Irving)
- Total of delinquent loans: 19.1 percent
- Total of seriously delinquent loans: 14.6 percent
- Percentage of loans backed by FHA: 14.2 percent
Washington, D.C. (Arlington, Alexandria)
- Total of delinquent loans: 18.8 percent
- Total of seriously delinquent loans: 14.5 percent
- Percentage of loans backed by FHA: 13.7 percent
Baltimore, Maryland (Columbia, Towson)
- Total of delinquent loans: 17.3 percent
- Total of seriously delinquent loans: 12.8 percent
- Percentage of loans backed by FHA: 19.4 percent
San Antonio, Texas (New Braunfels)
- Total of delinquent loans: 16 percent
- Total of seriously delinquent loans: 11.1 percent
- Percentage of loans backed by FHA: 19.3 percent
Fort Worth, Texas (Arlington, Grapevine)
- Total of delinquent loans: 15.7 percent
- Total of seriously delinquent loans: 11 percent
- Percentage of loans backed by FHA: 18.3 percent
Philadelphia, Pennsylvania
- Total of delinquent loans: 17.5 percent
- Total of seriously delinquent loans: 11.9 percent
- Percentage of loans backed by FHA: 17.6 percent