According to a recent study completed by TransUnion, a credit reporting agency, mortgage delinquency rates should see a significant drop by the end of 2012, if there are no setbacks in the economy, reported The Associative Press.
TransUnion reported that delinquency rates, the percentage of borrowers 60 or more days past due on their mortgage payments, may increase to 6 percent over the first few months of 2012 but then steadily decline over the remainder of the year. By the end of 2012, delinquency rates could be as low as 5 percent, down a good deal from the 2009 peak of 6.89 percent.
Reasons for the forecasted decline include expectations of an improved economy, improved consumer confidence, and also the fact that banks which have been slow to process foreclosures will sort out the mortgages that have been listed as delinquent for longer than they normally would have been.
Although delinquency rates are expected to drop over the next year, the number of borrowers past due on their mortgages is still far from the 1.5 to 2 percent rates seen pre-recession.