The US economy is experiencing a widening gap between those who can afford it and those who cannot. The latest data from the Federal Reserve Bank of New York shows that mortgage delinquency rates among lower-income households have surged, with families in the lowest-income bracket facing nearly 3% delinquency rates by the end of 2025.
This trend is alarming, as it suggests financial distress is deepening for those who need help the most. The job market may be a major contributor to this disparity, with worsening regional labor markets making it difficult for people to keep up with mortgage payments.
Many homeowners are struggling to make ends meet, and missing a payment can send them into a state of silence and fear. It’s essential to contact your mortgage servicer as soon as you know you cannot make a payment. Communication is key to finding solutions.
Homeowners facing foreclosure should consider options such as forbearance, repayment plans, loan modifications, or loan extensions. However, it’s crucial to avoid companies that charge up-front fees and promise quick-fix services, as they may be scams.
To navigate this situation, homeowners can reach out to local housing counseling agencies approved by the Department of Housing and Urban Development (HUD) for free or low-cost assistance. They can also contact nonprofit credit counselors like the National Foundation for Credit Counseling for guidance.
By taking proactive steps and seeking help when needed, homeowners can avoid falling into foreclosure and find a way to stay in their homes despite financial challenges.
Source: https://www.washingtonpost.com/business/2026/02/14/mortgage-problems-delinquencies