Home loan delinquencies all across the country are skyrocketing, even in the nation’s largest city, New York, where the number of home loan defaults is only projected to get worse, reports NYDailyNews.com (“Late Bills Soaring in City: Debts Rise on Credit Cards, Auto Loans,” Dec. 3, 2008).

“Consumers will still feel significant stress due to the state of the economy that will be reflected in their loan payments,” said Ezra Becker of TransUnion, one of the three major credit bureaus. “The bottom line is [consumers] have reached the limits of their ability to pay.”

Nationwide, a record 10 percent of all homeowners are either in foreclosure or at least one month behind on their mortgage payments, while foreclosures have increased 76% to 1.35 million this year, according to a National Delinquency Survey released last week by the Mortgage Bankers Association (“Foreclosures Soar 76% to Record 1.35 Million,” CNNMoney.com, Dec. 5, 2008).

New York City mortgage holders won’t fare much better in the coming months, according to TransUnion’s projections. More than 6 percent of New York City homeowners will be at least 60 days late on their home loan payments by the end of 2009 and foreclosures in the city have already weighed in at just less than the national average, increasing 50% over 2007, reports CrainsNewYork.com (“New York City Foreclosures Soar,” Nov. 4, 2008).

While overall New York City’s economy and mortgage industry have held up better than the rest of the country, Becker says “New Yorkers are closing the gap” with the rest of nation.

He advises all borrowers to do whatever they can to make “regular, consistent, on-time payments” on their debt, and to make arrangements with their lender ahead of time if they won’t be able to make a payment.

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