It seems as though more people are able to pay their bills on time, at least according to a recent trend in the mortgage market.
Fannie Mae said recently that the number of U.S. mortgages considered seriously delinquent dropped for the first time in three years. The rate of delinquencies dropped to 5.47 percent, though that number was just 3.15 percent a year ago.
There are a number of the different factors that can cause a homeowner to make late payments, or even no payments on their mortgage. Predominant factors contributing to mortgage delinquencies in todays economy follow.
- Unemployment: Losing ones job is a huge blow to the security of ones household. It can lead to homeowners scrambling to pay the bills every month, and some tough decisions may arise, such as what bills to prioritize the mortgage or, say, keeping the lights or heat on.
- Emergencies: Because many in America live without some kind of health care, any emergency that requires a hospital visit could end up being a costly one that requires a big chunk of the monthly budget.
- Other debt: Sometimes the cost of living can get to be too much even for those with jobs, and if a consumer has too many bills to pay, then they may start cutting corners and decide not to pay their mortgage for a while.
Any consumer struggling to make payments should consult a credit counselor before their financial situation gets out of hand.