Late payments on home loans, which had been trending down, rose in the second quarter in Ohio and Michigan, a report shows.
In both states, the rates show almost one of every 10 households are late on their mortgage. Experts attribute it to flat paychecks and increasing home costs, making it hard to pay bills on time.
In the April through June period, 9.1 percent of mortgages had payments at least 30 days last in Ohio, up from 8.3 percent in the first quarter of the year but down from 10 percent a year earlier, according to the Mortgage Bankers Association. The state ranked 10th among all states in delinquencies.
In Michigan, 9.7 percent of mortgages in the second quarter were delinquent, up from 9.1 percent in the first quarter and down from 10 percent a year ago. Michigan ranked 7th overall in delinquencies.
Martin Sutter, president of Genoa Bank, said delinquency rates likely are being affected by a rise in real estate taxes, insurance rates, and other expenses that are stretching homeowners' budgets past the breaking point.
"You get an increase in taxes, an increase in school levies -- it's just the way it is. And you've got the reality of high gas prices," he said. "Every little bit hurts and individuals, especially if they're on unemployment, aren't getting any increases.
"People aren't getting raises and overall income hasn't been increasing. Yet taxes, insurance, food costs are all going up," he said.
Until the local unemployment rates go down, delinquency rate likely will keep rising, he said.
Ron Patton, senior vice president of lending at Directions Credit Union of Sylvania, said his institution hasn't had much of a change in delinquencies. But, he added, the economy does not bode well for future delinquencies.
"We're not done with this economy and we're having to deal with that. It seems like one day we get new jobs, and the next another company is saying they're going to lay off people," Mr. Patton said.
Nationally, the mortgage bankers said the delinquency rate in the second quarter was 8.1 percent, the national trade group's report shows, up from 7.8 percent in the first quarter but down from 9.4 percent a year ago.
Figures for late payments on home loans in the second quarter weren't available from the mortgage bankers, but an earlier report by California real-estate data firm CoreLogic shows serious delinquencies decreased in May for metro Toledo. That report showed 6.6 percent of local home loans were more than 90 days late in payments, down slightly from May and from 7.2 percent a year earlier.
Contact Jon Chavez at: email@example.com or 419-724-6128.
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