Rows of houses in Buffalo's Hamlin Park neighborhood, Monday, March 30, 2026. (Derek Gee/Buffalo News via Getty Images)
According to a recent WalletHub analysis, mortgage delinquencies can have long-lasting consequences for borrowers, with missed payments remaining on credit reports for up to seven years and negatively impacting credit scores.
A rise in mortgage delinquency rates can also signal broader economic challenges within a state, as more homeowners struggle to keep up with monthly payments.
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To identify where borrowers are facing the greatest difficulties — and where they are staying on track — WalletHub analyzed proprietary user data comparing the fourth quarter of 2025 with the first quarter of 2026.
Methodology :
To identify the states with the highest rates of mortgage delinquency, WalletHub analyzed proprietary consumer data tracking mortgage payment delinquencies from Q4 2025 through Q1 2026.
What they're saying:
"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," said Chip Lupo, WalletHub analyst. "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."
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Top states with rising mortgage delinquency
Dig deeper:
Vermont
Vermont recorded the largest increase in mortgage delinquency rates in the nation between Q4 2025 and Q1 2026. The number of delinquent mortgages in the state climbed by more than 12% during that period. Despite the spike, Vermont still maintains one of the country’s lowest overall delinquency rates, at roughly 6%.
The state’s moderate economic performance and relatively high tax burden may be contributing factors behind the recent increase in missed mortgage payments.
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Delaware
Delaware posted the second-largest increase in mortgage delinquencies nationwide, with rates rising nearly 7% from Q4 2025 to Q1 2026. The state’s overall mortgage delinquency rate now stands at 8.4%, ranking 13th highest in the country and signaling mounting pressure on homeowners.
The state also has a comparatively high percentage of residents who have received payment accommodations on debts due to financial hardship, pointing to broader signs of stress in Delaware’s housing and credit markets.
Louisiana
Louisiana ranked third for the sharpest increase in mortgage delinquency, with delinquent mortgages rising by more than 4% between Q4 2025 and Q1 2026. The state also has the second-highest mortgage delinquency rate in the nation at 14.3%, underscoring significant financial strain among homeowners.
In addition, Louisiana leads the country in the share of consumers with credit accounts in distress — meaning lenders have allowed delayed payments because of financial hardship — suggesting residents are struggling across multiple forms of debt, not just mortgages.
The Source: The information in this story comes from a recent WalletHub analysis of proprietary consumer data tracking mortgage delinquency rates between the fourth quarter of 2025 and the first quarter of 2026. This story was reported from Los Angeles.