Mortgage delinquencies are increasing across the U.S.; see which cities are most affected

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A pre-foreclosure is a stage in the foreclosure process where a homeowner has fallen behind on mortgage payments, but the lender has not yet seized the property. The owner still has time to work with the bank to catch up on their payments. (Photo by

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The increasing cost of living has left many homeowners struggling to keep up with their mortgage payments.

Dig deeper:

Getting behind on a monthly mortgage payment can lead to late fees, a decrease in your credit score and even foreclosure.

A recent study by WalletHub analyzed what cities have the most borrowers delinquent on their mortgage payments. 

Laredo, Texas, Detroit, Mich, and Newark, N.J. top the list of the 100 cities analyzed,    

WalletHub says their analysis of Laredo shows around 24% of mortgages in delinquent status as of Q2 2025, much higher than Detroit which has nearly 19%, and Newark with 17% of mortgage delinquencies.

In general, WalletHub says Detroit has a serious delinquency problem even outside of mortgages, with the Motor City ranking third among the cities where people are the most delinquent on all types of debt combined. The study shows Newark ranks just behind Detroit in overall debt in general. 

WalletHub study methodology

To determine the cities where most people are delinquent on mortgage loans, WalletHub analyzed proprietary user data on consumer mortgage delinquency rates between Q1 2025 and Q2 2025.