Credit scores suffer greatly when you are behind on your mortgage, and late payments are recorded on consumer’s credit report for seven years. However, experts suggest it is best to get back on track as soon as possible after a missed payment because payments are only recorded to the credit bureaus as delinquent if they are thirty days past due.
It may come as no surprise to some that there will always be some type of mortgage default, but when the rate of delinquent increases throughout the state, it may be a sign of a “faltering economy.” WalletHub examined proprietary user data from Q4 2025 to Q1 2026 to identify the states where mortgage payments are most difficult to make and the regions where borrowers are more on schedule.
Top 10 States Where Mortgage Delinquency is Increasing the Most:
| Overall Rank | State | Share of average number of mortgage loans delinquent in Q1 2026 | Change in average number of mortgage loans delinquent (Q1 2026 vs. Q4 2025) |
|---|---|---|---|
| No. 1 | Vermont | 5.81% | 12.32% |
| No. 2 | Delaware | 8.35% | 6.92% |
| No. 3 | Louisiana | 14.33% | 4.40% |
| No. 4 | Florida | 7.05% | 3.87% |
| No. 5 | Montana | 5.33% | 3.71% |
| No. 6 | Connecticut | 8.00% | 3.38% |
| No. 7 | New Hampshire | 6.25% | 3.30% |
| No. 8 | Colorado | 5.02% | 3.29% |
| No. 9 | Texas | 9.44% | 2.97% |
| No. 10 | Idaho | 6.12% | 2.83% |
“If you are delinquent on mortgage debt, you typically have until the debt is 30 days past-due (meaning you have missed two payments) in order to get current,” said Chip Lupo, a WalletHub Analyst. “After that, the lender will report the delinquency to the credit bureaus, which will damage your credit score. Therefore, it’s important to try to get current on your debt as quickly as possible. If you are experiencing financial difficulty that prevents you from paying, ask your lender if they will allow temporary forbearance until you get back on your feet, which may prevent you from being reported as delinquent.”
A Closer Look at States with Rapidly-Increasing Delinquency Rates
No. 1: Vermont — “The Green Mountain State”
The state with the highest rate of mortgage delinquency is Vermont. The state saw the most increase in delinquent mortgages in the nation in Q1 2026, up by more than 12% from Q4 2025. Vermont still has one of the lowest mortgage default rates in the nation, at about 6%, despite this dramatic rise. Also, Vermont has comparatively high tax rates and a mid-tier state economy overall. The current increase in mortgage delinquency could be attributed to these variables.
No. 2: Delaware — “The First State”
Delaware has the second-highest rate of mortgage delinquency in the country, rising by about 7% between Q4 2025 and Q1 2026. The state has the 13th-highest overall delinquency rate (8.4%), indicating a strain on mortgage stability. Delaware’s mortgage market is under increasing strain, as seen by the comparatively high percentage of residents who have been permitted to postpone debt payments due to financial hardship.
No. 3: Louisiana — “The Pelican State”
Among the states where mortgage loan delinquency is rising the fastest, Louisiana comes in third. Delinquent mortgages increased by more than 4% in Louisiana between Q4 2025 and Q1 2026, the third-largest increase nationwide. In comparison to other states, Louisiana has the second-highest delinquency rate (14.3%), showing that homeowners are experiencing increasing financial difficulty.
Interestingly, Louisiana leads the nation in the percentage of persons with credit accounts in distress—that is, those who have been permitted to postpone payments because of financial difficulties—in addition to experiencing a significant rise in mortgage delinquency recently. This demonstrates that locals are struggling to pay off a variety of debts.
Top 10 States Where Mortgage Delinquency is Increasing the Least:
| Overall Rank | State | Share of average number of mortgage loans delinquent in Q1 2026 | Change in average number of mortgage loans delinquent (Q1 2026 vs. Q4 2025) |
|---|---|---|---|
| No. 50 | Wyoming | 5.07% | -14.41% |
| No. 49 | Nebraska | 6.46% | -7.88% |
| No. 48 | Mississippi | 15.05% | -4.27% |
| No. 47 | Maine | 6.49% | -3.37% |
| No. 46 | Missouri | 7.17% | -3.34% |
| No. 45 | Indiana | 8.51% | -3.22% |
| No. 44 | Maryland | 7.79% | -2.53% |
| No. 43 | Virginia | 7.05% | -2.21% |
| No. 42 | Utah | 5.65% | -2.11% |
| No. 41 | Hawaii | 5.36% | -1.83% |
| No. 40 | Iowa | 4.15% | -1.58% |
Note: Data used to create this ranking were collected as of April 23, 2026 from WalletHub database.
