Hurricanes Harvey and Irma Bump Up Non-Current Mortgage Levels

The number of non-current mortgages, defined as being at least 30 days past-due or in active foreclosure, swelled by 214,000 last month, a nine percent spike from August, according to new data from Black Knight. However, this upswing is being blamed primarily on the damage brought by Hurricanes Harvey and Irma.

 

Black Knight observed that the majority of properties that fueled this statistic were located in FEMA-declared hurricane disaster areas. The non-current inventory rose by 84,000, or 48 percent, in Irma disaster areas and by 52,000, or 67 percent, in the Harvey disaster areas. Before the hurricanes came around, Texas and Florida ranked 20th and 22nd among states by non-current mortgage rates, but after the storms they now rank third and fifth, respectively. Black Knight also attributed the hurricanes to the first annual rise in mortgage delinquencies since July 2010.

 

However, there was some good data news: The foreclosure starts level in September were at their lowest level in more than 17 years. Much of the area impacted by the hurricanes were covered by federal post-hurricane foreclosure action moratoria.

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