Plagued by unemployment problems, U.S. mortgage borrowers set a dubious record last month, driving delinquencies to an all-time high and threatening to flood a stabilizing economy with more foreclosures and bankruptcies, data showed this week.

 According to a monthly report by the credit bureau Equifax, 7.58 percent of homeowners nationwide fell more than 30 days behind on their mortgage payments in August. It was the fourth straight month of rising delinquencies, and the statistics suggest their pace is beginning to pick up. August’s delinquency rate also was more than double the rate at the same time two years ago, when 3.44 percent of borrowers were more than a month past due.

The economy has shown strong signs that a recovery is afoot, and the mortgage industry – ground zero for the recession – has seen some positive developments, too, in terms of home sales and valuations. But foreclosure and delinquency rates continue to mount, partly because of new job losses among borrowers and in part due to the increase in underwater mortgages, in which declining values left homeowners owing more on their loans than their homes are worth.

Moody’s also reported a rise in personal bankruptcy filings for August, which were up 32 percent from figures in 2008.

The credit bureau said, however, that borrowers appeared to be paying more of their consumer debts off on time, in spite of the mortgage crunch. Figures showed serious delinquencies on credit cards actually dropped in August for the third straight month.

Paradoxically, borrowers also are saving more, too. Dann Adams, president of Equifax’s Consumer Information Solutions department, told Reuters the savings rate was near 5 percent, “a level we haven’t seen in years.”

“The data from August further confirms that we’re witnessing a dramatic change in consumer habits,” he said.

 

 

09/23/2009 BY: ADAM WEINSTEIN http://www.dsnews.com/articles/us-mortgage-delinquencies-already-at-an-all-time-high-keep-rising-2009-09-23