RI Ranks 3rd Highest for States Where Mortgage Delinquency Is Increasing the Most

RI Ranks 3rd Highest for States Where Mortgage Delinquency Is Increasing the Most

Mortgage delinquency in Rhode Island increased by nearly 20% between Q4 2023 and Q1 2024, which ranks as the third highest nationally.

That is the bad news.

The better news is Rhode Island residents still only have the 32nd-highest delinquency rate overall, though, at 5.3%.

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According to WalletHub, "The state has a very low share of people who have been allowed to delay payments on their debts due to financial difficulty. This means that when many people in Rhode Island are late on their mortgage payments, their score will continually decrease, without any special provisions from their bank. Some Rhode Islanders may want to request “forbearance” or a “hardship program” in order to temporarily avoid payments being marked as late until their situation improves."

“Being delinquent on a mortgage is very bad for your credit score, and late payments remain on your credit report for seven years. Payments are only reported to the credit bureaus as delinquent once they are 30 days past due, though, so getting back on track as quickly as possible after a missed payment is ideal,” writes WalletHub. “Some mortgage delinquency will always happen, but when the rate of delinquency rises statewide, that can indicate the state’s economy is struggling. To highlight the states where people are having the most trouble making their mortgage payments, as well as the areas where borrowers are more on track, WalletHub analyzed proprietary user data from Q4 2023 to Q1 2024."

“If you are delinquent on mortgage debt, you typically have until the debt is 30 days past-due (meaning you have missed two payments) in order to get current. After that, the lender will report the delinquency to the credit bureaus, which will damage your credit score. Therefore, it’s important to try to get current on your debt as quickly as possible. If you are experiencing financial difficulty that prevents you from paying, ask your lender if they will allow temporary forbearance until you get back on your feet, which may prevent you from being reported as delinquent,” said Cassandra Happe, Wallethub analyst.