A fresh analysis from WalletHub shows Vermont posting the steepest rise in mortgage delinquencies across the United States, as the Green Mountain State recorded a 12.32 percent increase between the fourth quarter of 2025 and the first quarter of 2026.
The report, which draws on WalletHub's proprietary user data, tracks the average number of delinquent mortgage loans state by state. Analysts warn that borrowers falling behind on payments face serious financial repercussions if they don't act quickly.
“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, in the release. “After that, the lender will report the delinquency to the credit bureaus, which will damage your credit score.”
Behind Vermont, Delaware saw a 6.92 percent uptick, followed by Louisiana at 4.4 percent, Florida at 3.87 percent, and Montana at 3.41 percent. These five states represent the sharpest spikes in mortgage payment troubles during the period examined.
On the other end of the spectrum, Wyoming experienced a 14.41 percent decline in delinquencies, the largest improvement nationwide. Nebraska followed with a 7.88 percent drop, while Mississippi, Maine, and Missouri each recorded decreases of 4.27 percent, 3.37 percent, and 3.37 percent, respectively.
Mississippi still holds the highest overall share of delinquent mortgage loans as of Q1 2026, at 15.05 percent. Louisiana came next at 14.33 percent, with Arkansas at 11.28 percent, Alabama at 10.85 percent, and West Virginia at 10.63 percent rounding out the top five states with the most severe delinquency burdens.
Lupo stressed the importance of addressing missed payments without delay. “It’s important to try to get current on your debt as quickly as possible,” he said. “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.”
The findings come amid broader economic pressures that have hit some states harder than others. While overdose deaths drop nationwide, financial strains from inflation and housing costs continue to squeeze households in regions like the Northeast and Gulf Coast. Meanwhile, midsize cities outperform as US population growth slows, suggesting that demographic shifts may be influencing local housing markets.
For policymakers, the data underscores the uneven nature of the economic recovery. States with high delinquency rates may need targeted interventions to prevent a wave of foreclosures, especially as Senate control up for grabs as Democrats seize opening in red states could shift federal housing policy priorities.
