Experian^® Study Shows Severely Delinquent Mortgage Accounts Up 15 Percent in One Year

Experian's National Score Index^® study showed that many U.S. homeowners continue to weather the current credit crunch and real estate market conditions, as the number of severely delinquent mortgage accounts increased 15 percent in one year.

The national average credit score for those with a severely delinquent mortgage account was 599 in February 2008, compared to 605 in February 2007. Conversely, the average credit score in February 2008 for those with a mortgage account with no delinquencies was 750. Severely delinquent mortgage accounts include charge-offs, foreclosures, repossession, collections, voluntary surrender and bankruptcy.

The study also found that:

• The average mortgage balance for those with a severely delinquent mortgage account was $131,699 in February 2008, compared to $124,465 in February 2007
• The states with the most severely delinquent mortgage accounts include California (12.4 percent of mortgage accounts are severely delinquent), Florida (8 percent of mortgage accounts are severely delinquent) and Texas (6.3 percent of mortgage accounts are severely delinquent)
• Washington D.C. had the lowest average credit score for those with a severely delinquent mortgage account at 583

Changes in the housing market have affected many homeowners across the nation, with consumers in some states showing a significant increase in severely delinquent mortgage accounts. Delinquent accounts can have a negative impact on a consumer's credit score which could lead to higher interest rates when trying to refinance a current home loan, obtain a new loan or other lines of credit.