Percentage of Delinquent Mortgages Hits New High

Chicago, IL, Feb. 17, 2010--The percentage of delinquent mortgages hit another record during the fourth quarter of 2009, according to credit reporting agency Transunion.

For the fourth quarter, 6.89 percent of mortgage payments were 60 or more days past due, TransUnion said. That's up from 4.58 percent in the final three months of 2008.

The previous record delinquency rate was 6.25 percent in the third quarter of 2009.

The latest report marked the 12th consecutive quarter -- equal to three full years -- that delinquency rates have risen from the previous year.

FJ Guarrera, vice president of TransUnion's financial services business unit, noted that many homeowners still have adjustable rate mortgages written in late 2006 or early 2007 due to reset to higher rates in coming months.

That could drive foreclosures even higher, especially in areas where home prices have fallen to the point where values are lower than mortgages. "We're not out of the woods yet," Guarrera said.