Where Mortgage Distress Is Concentrating—and Where It’s Still Rare

Mortgage distress by state: latest snapshot

Mortgage distress remains modest nationwide, yet regional spikes are stark. Early‑stage delinquencies (30‑60 days) have ↑ 0.3% since 2022, while serious arrears (90‑180 days) follow suit, as reflected in the data.

Data from the National Mortgage Database show total distressed mortgages—those in foreclosure, 90‑180 days past due, 30‑60 days past due, or in forbearance—at 2.9% in Q4 2025, well below the ↓ 11.5% peak of Q4 2009.

Geography of stress

Contrary to expectations, the highest concentrations are not in former pandemic boomtowns such as Austin or Cape Coral. Louisiana and Mississippi top the list, driven by insurance losses and lingering credit strain.

“The lagging impact of expired pandemic forbearance programs is finally surfacing in the delinquency pipeline,” a senior analyst noted.

Government‑insured loans (FHA, USDA, VA) account for 23.3% of the mortgage stock and have shown a sharper rise in arrears, especially FHA, which serves many first‑time buyers.

For a broader view, see the Reuters coverage of the national foreclosure rebound.