Late home payments rise in NE states

Associated Press

NEW YORK

Late mortgage payments jumped sharply in several Northeastern states during the third quarter, while the national delinquency rate rose at a far-slower pace.

The rate of borrowers who were 60 days or more past due on their home loans jumped sharply in New York, New Jersey, Maine, Connecticut and Delaware for the three months ended Sept. 30 compared with the year-ago period, according to TransUnion.

Pennsylvania, Vermont, Rhode Island, Maryland and New Hampshire also saw higher delinquency in the quarter, but the increases were not as substantial.

“The whole Northeast is experiencing a little bit of an increase,” said FJ Guarrera, vice president in TransUnion’s financial services business unit. Because the spikes were seen for only one quarter, it’s too early to tell if they represent a new trend.

Guarrera noted the region has been somewhat insulated from the severe foreclosure problems seen in other states. Home values have not fallen as sharply either, he noted. The jumps could be lagging effects from the overall economic downturn, but more data is needed before any conclusions can be made.