Four Texas Cities Make Top Ten for People Who Can’t Pay Mortgage

The higher mortgage rates, costs for buying a home, and increased inflation for things like groceries are making life extremely difficult for many people in the state of Texas. There are four cities that are truly experiencing the squeeze according to an analysis by WalletHub.

When you are struggling to keep food on the table, paying the mortgage can be extremely difficult to do. When you miss a mortgage payment it sets in motion a snowball effect, where you likely will be hit with a late fee, your credit score will take a hit and if you continually can't pay the mortgage, the bank may foreclose on your home.

According to statistics from the Anney Casey Foundation, called the Alice Report, 28% of people in Texas are struggling just to pay for the basics each month. If you are struggling for just the basics, then you are walking a serious line when it comes to being able to continue to avoid the mortgage. It's a grueling situation for many families in Texas.

The 9th Highest Rate of Delinquency on Home Loans Is in Lubbock

According to WalletHub the city of Lubbock has a 13.21% delinquency rate. Thirteen percent of people with a home loan in the city have missed at least one payment on their house.

According to Everything Lubbock, higher interest rates have squeezed many people out of the house-buying market. They also that people typically spend about 35% of their salary on a mortgage. With costs of everything going up, people have less money to spend in other areas.

One of the benefits of federal government rules and regulations when it comes to foreclosures, according to Texas.gov, is you have to be over 120 delinquent on paying before a bank can start the foreclosure process.

The 7th Highest Rate of Delinquency on Home Loans Is in El Paso

When WalletHub analyzed all of the facts and figures from people who ended up missing their payments on their house, El Paso came in 7th. They have relatively low employment at 4.5%, but with the cost of goods and services rising it gets harder to afford the mortgage.

Many homeowners also have to contend with making sure they pay their property taxes. In addition, the lack of enough housing in El Paso is one of the factors in higher prices. One El Paso representative is even under a recall effort because he suggests the city should build an affordable housing development according to KFOX-TV.

The 6th Highest Rate of Delinquency on Home Loans Is in Corpus Cristi

The same factor impacting the other cities on this list is also hurting the people of Corpus Christi.

For homeowners who are just trying to make it paycheck to paycheck, it's a huge struggle. According to the U.S. Department of Labor Statistics, the unemployment rate has wobbled between 4.4% and 5% this year.

The better news for Corpus Christi is according to the city government Bass Pro Shops will be building it's newest facility in the city.

The Highest Rate of Delinquency on a Home Loan Is in Laredo

The city of Laredo doesn't have great news to report when it comes to making those monthly payments in mortgages. According to WalletHub, 23% of people in Laredo are late on making at least one house payment.

Laredo has a poverty rate of 20%. People there are struggling to make ends meet. In addition with not being able to make mortgage payments, WalletHub points out that people in Laredo have one of the highest rates of citizens who are not good with money management.

While Texas has these four cities where a significant number of people are behind on their mortgages, there is some good news. While Laredo has the highest delinquency rate, overall, WalletHub says the percentage has gone down since last year, so there is somewhat of a silver lining to this story.