While home values are rising fast and those who can hold onto their house are in a very favorable position, mortgage payment pile-up has been a major problem throughout the pandemic.
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. An additional 10.5 percent of those loans were delinquent by more than 90 days and at risk of going into default. While falling from highs seen in the winter, delinquency is still affecting millions of homeowners struggling with their mortgages.
“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. “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.”
The reasons for the situation are multifaceted — while various government deferral programs protect renters and homeowners alike from immediate eviction, missed payments do not disappear and often add up to a bigger financial hole later. But the numbers clearly show that owners in certain cities and neighborhoods are at much higher risk of foreclosure.
The places most at risk are often not those that are lower income or disadvantaged — affluent neighborhoods in cities like Houston and Chicago often make such lists because the mortgage payments are high and difficult to maintain in the event of unforeseen job loss.
See the full list below of cities and neighborhoods where the risk of foreclosure is greatest.
Downtown Atlanta| Luciano Mortula | Shutterstock.com
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
Downtown Chicago | Lance Anderson | Unsplash
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
Downtown Baltimore | Atlantide Phototravel | Getty Images
Riverside, California (San Bernardino, Ontario)
- Total of delinquent loans: 14.3 percent
- Total of seriously delinquent loans: 10.5 percent
- Percentage of loans backed by FHA: 20.6 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
Downtown Philadelphia | Leo SERRAT | Unsplash
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
Total US
- Total of delinquent loans: 14.7 percent
- Total of seriously delinquent loans: 10.5 percent
- Percentage of loans backed by FHA: 14.7 percent