COVINA, Calif.--(BUSINESS WIRE)--The Northeast now leads the country in delinquent tax payments, according to the latest data from LERETA, a leading national real estate tax and flood service provider. During the fourth quarter of 2017, the South led the country in delinquencies. However, delinquency rates across the country, including the South, are now mostly down due in part to an economic recovery.
LERETA reviewed 48.7 million records and 2,159 jurisdictions nationwide. The current data posted during the first quarter of 2018 indicates a nationwide delinquency rate of 7.3 percent, compared to 8.8 percent compiled in the fourth quarter of 2017. This dataset includes residential and commercial properties.
The West was the only region that experienced a slight uptick in delinquencies by close to 1 percent compared to the end of 2017. All the other regions experienced a decrease in delinquent tax rates. The South’s delinquency rate fell by 1.9 percent and the Midwest’s by 1.8 percent.
“The overall national reduction in the number of tax delinquencies points to the stability of the real estate market and people wanting to protect the increased equity in their homes,” said Terry Cason, data modeling analyst at LERETA. “The overall health of the economy is part of the reason we have seen a decrease in delinquencies. With home values as high as they are, I am sure we will continue to see homeowners wanting to protect their investment.”
The delinquency data shows where property tax payments were not made and led to the economic loss date for the collecting agency. An account becomes delinquent when the due date for a tax return or other established liability has passed and the amount due remains unpaid. Penalties and interest begin to accrue on the unpaid tax until the entire balance is paid in full.
Since 1986, LERETA has provided the mortgage and insurance industries the fastest, most accurate and complete access to property tax data and flood hazard status information across the U.S. LERETA is committed to giving customers extraordinary service and cost-effective property tax and flood solutions. LERETA’s services are designed to increase efficiency, reduce penalties and liabilities and improve processes for mortgage originators and servicers. LERETA’s dedicated teams of real estate tax and flood professionals along with LERETA’s experienced management team allow the company to lead the industry in service and technology.