Louisiana Sees Drop in Mortgage Delinquency

Louisiana is now first among recovering state mortgage delinquencies; neighboring Mississippi was a close second. The states that had been devastated by hurricane Katrina seem to now be mending financially as people return and the economy starts to recover. After Katrina and Rita, the two states had been ranked first and second in the amount of mortgage delinquencies per capita.

After the busy hurricane season, banks had allowed 90-day forbearance for those affected by the storms. These were extended after the massive devastation was realized, and foreclosures were delayed for months longer than normal. More than nine months later, many institutions are still executing relief plans for the areas. The total amount of delinquencies has steadily been falling in the areas since it peaked last October, right after the storms hit. The amount of past due mortgages totaled almost 13% of all mortgages in the area; that number has now dropped to less than 6%.