Given the timing of the hurricanes and based on observations from previous hurricanes, the worst of the impact from Hurricanes Harvey and Irma was predicted to come in September.
The two hurricanes came within a week of each other and wreaked havoc on parts of Florida and South Texas, destroying thousands of homes.
Now almost two months after Hurricane Harvey, Black Knight’s “first look” report on the September 2017 mortgage data shows the initial numbers on the impact of the hurricanes.
Nationally, the report stated that the number of non-current mortgages (those at least 30 days past-due or in active foreclosure) surged by 214,000, or 9%, driven primarily by fallout from Hurricanes Harvey and Irma.
The bulk of the increase came from FEMA-declared hurricane disaster areas. Non-current inventory rose by 84,000, or 48%, in Irma disaster areas and 52,000, or 67%, in those related to Harvey, the report found.
To put it in perspective, before the hurricanes hit, Texas and Florida ranked 20th and 22nd among states by non-current mortgage rates. But, after the storms, they ranked 3rd and 5th, respectively.
While it was a result of the hurricane impact, September witnessed the first annual rise in mortgage delinquencies (borrowers at least 30 days past-due but not yet in active foreclosure) since July 2010.
Before the storm hit, Fannie Mae and Freddie Mac announced they were suspending foreclosures and evictions in wake of the hurricane.