All 50 states and the District of Columbia had decreases in tax delinquency rates between 2008 and 2014, reports Dingxi Qui of CoreLogic.
The decrease in tax delinquency rates – the percentage of properties with a mortgage that have not paid the property taxes by their due dates – was largely attributable to the employment and income growth from the trough of the Great Recession through 2014. More cautious underwriting practices adopted by banks have also contributed to the decline in both loan default and tax delinquency rates.
Property tax delinquency rates are affected by macroeconomic conditions, such as the health of the overall economy, which can impact homeowners’ ability to pay. Additionally, the severity of the delinquency penalty has an effect on property tax delinquency rates. States have different rules regarding tax payment frequencies, due dates, late fees, penalty interest rates, and time period before the taxing agencies can take foreclosure action.
To see the tax delinquency rates for individual states from 2008-2014, click below.