Mortgage Default Rate in Arizona

Mortgage Default Rate in Arizona

Every day, thousands of Phoenix homeowners face foreclosure. While average mortgage default rates are dropping nationwide, some cities are seeing a worrisome increase. If you’ve missed a mortgage payment, you need to act now, before your mortgage goes into default.

Is it mortgage delinquency, mortgage default, or foreclosure?

Missing a mortgage payment doesn’t automatically send your home into foreclosure. A couple of other stages come first: mortgage delinquency and mortgage default.

Your mortgage becomes delinquent when your payment is late, even by a single day. Many lenders allow a grace period of 15 to 30 days before adding a late payment fee. After that, the lender will notify the credit bureaus of your mortgage delinquency.

After several late payments (typically three), your mortgage will go into default. At that point, you should receive legal notice that the lender will begin foreclosure proceedings unless you pay off the late balance. If you can get completely caught up on the mortgage, including paying any legal fees, you can avoid any further trouble. Otherwise, your home will go into foreclosure.

Mortgage assistance in Arizona

In Phoenix, .7% are at least 30 days late, according to new data from the federal government. That indicates that while Phoenix’s average foreclosure rate may have dropped to pre-recession levels, many homeowners are still struggling.

In 2010, the Arizona Department of Housing launched the Save Our Home AZ program, which is funded by the United States Department of the Treasury. Eligible Arizona homeowners may qualify for principal reduction assistance, unemployment mortgage assistance, and reinstatement of delinquent payments. The program has helped nearly 8,000 families avoid foreclosure or purchase a home.

Mortgage default rates dropping across the U.S.

In July 2017, the nationwide mortgage default rate was near its lowest point in the past decade, according to data from S&P/Experian Consumer Credit Default Indices.

In July, the default rate for first mortgages was only 0.62 percent. The rate has been hovering around one percent since 2015, and it’s far lower than the five-to-six percent range seen during the worst of the housing crisis in 2009 and 2010.

Top 5 mortgage default rates by state

The rate of mortgage default varies widely from one city to the next. The rates for 2022, ranked largest to smallest, indicate that Arkansas leads the nation in mortgage defaults.

  1. Pine Bluff, Arkansas 8.3%
  2. Laredo, Texas 8.1%
  3. Vineland, New Jersey 7.7%
  4. Odessa, Texas 7.0%
  5. McAllen, Texas 6.6%

Facing mortgage default? Sell your Phoenix home for cash

If your mortgage is in danger of going into default, or even if it’s already in default, remember that you have other options. Many homeowners feel like they just can’t afford to make their mortgage payments. They also don’t have the time or money to fix up the home and list it for sale.

But you don’t have to let your home go into foreclosure. You may be able to sell your house quickly, “as is,” without making any repairs. Find out how We Buy Ugly Houses® can help you get out of mortgage default and sell your Phoenix home for cash.