Many Americans are still struggling to make payments on their home loans, but the pace of the problem is slowing, according to new data.
TransUnion.com says that the proportion of homeowners who are 60 or more days late paying their home loan rose during the second quarter to reach 5.81 percent. In the first quarter, 5.22 percent of borrowers were late.
This is the 10th quarter in a row that delinquency rates have increased, and the new figure is an all-time high, the report states.
However, there is a silver lining to the findings. Although delinquency continues to go up, the rate of increase has decelerated - which could mean market stabilization is just around the corner, TransUnion said.
"For the first time since the recession began at the end of 2007, the quarter-to-quarter growth rate for national mortgage delinquency shows a decrease," explained FJ Guarrera, vice president of TransUnion's financial services division.
He said the new finding adds to "several complementary economic statistics at the national level" that potentially point to an end to the recession.
"This is particularly noteworthy, in that delinquency statistics are generally lagging indicators of the economic environment," Guarrera said.
Mortgage loan delinquency has jumped 65 percent year-on-year, according to the data. Nevada and Florida were the states with highest rates in the second quarter, at 13.8 percent and 12.3 percent respectively.
As delinquency rates continue to creep up, some troubled borrowers have been opting to apply for home loan modifications.
However, while modifying a home loan can significantly lower your monthly payments, some consumer advocates are warning that it can also leave a black mark on your credit score.
"You have to make a decision, because modifying your loan is going to hit your credit," consumer credit expert John Ulzheimer told the Sun-Sentinel.
Lenders can report a modification to credit bureaus as a "partial payment," which may stay on your credit report for seven years, he said.
TransUnion.com says that the proportion of homeowners who are 60 or more days late paying their home loan rose during the second quarter to reach 5.81 percent. In the first quarter, 5.22 percent of borrowers were late.
This is the 10th quarter in a row that delinquency rates have increased, and the new figure is an all-time high, the report states.
However, there is a silver lining to the findings. Although delinquency continues to go up, the rate of increase has decelerated - which could mean market stabilization is just around the corner, TransUnion said.
"For the first time since the recession began at the end of 2007, the quarter-to-quarter growth rate for national mortgage delinquency shows a decrease," explained FJ Guarrera, vice president of TransUnion's financial services division.
He said the new finding adds to "several complementary economic statistics at the national level" that potentially point to an end to the recession.
"This is particularly noteworthy, in that delinquency statistics are generally lagging indicators of the economic environment," Guarrera said.
Mortgage loan delinquency has jumped 65 percent year-on-year, according to the data. Nevada and Florida were the states with highest rates in the second quarter, at 13.8 percent and 12.3 percent respectively.
As delinquency rates continue to creep up, some troubled borrowers have been opting to apply for home loan modifications.
However, while modifying a home loan can significantly lower your monthly payments, some consumer advocates are warning that it can also leave a black mark on your credit score.
"You have to make a decision, because modifying your loan is going to hit your credit," consumer credit expert John Ulzheimer told the Sun-Sentinel.
Lenders can report a modification to credit bureaus as a "partial payment," which may stay on your credit report for seven years, he said.
