The number of borrowers behind on their mortgage payments is expected to drop sharply by the end of next year, according to a new report released by TransUnion.
Mortgage delinquency rates reflect the ratio of borrowers 60 or more days behind on their loan payments. Rates are expected to rise to about 6 percent during the first three months of 2012 before dropping to 5 percent by the end of the year, TransUnion forecasts. At its peak in the fourth quarter of 2009, mortgage delinquencies stood at a 6.89 percent rate.
An improving jobs picture, along with a stabilizing housing market, are expected to be the main contributors in curtailing mortgage delinquencies in 2012, TransUnion says.

Source: “Mortgage Delinquency to Drop Sharply in 2012, Report Says,” Associated Press (Dec. 7, 2011)