what are 60 plus delinquencies 
the 60 plus delinquency rate is a metric that is typically used for the housing industry to measure the number of mortgage loans that are more than 60 days past due on their monthly payments a 60 plus delinquency rate is often expressed as a percentage of a group of loans that have been underwritten within a specified time period such as one year understanding 60 plus delinquenciesthe 60 plus delinquency metric can also be used for auto loans and credit cards the 60 plus delinquency rate is helpful because it shows creditors and lenders whether consumers are falling behind on their payments and if they re likely to default on their loans the 60 plus rate may be split into prime loans and subprime loans subprime loans are for borrowers with a poor credit history the 60 plus delinquency rate on subprime loans is typically higher than for prime loans oftentimes 60 plus rates are published separately for fixed rate loans versus adjustable rate loans which have a variable rate and might have the option to reset to a fixed rate later in the term monitoring the 60 day rates as well as other delinquency rates for borrowers can provide enormous insight into the financial health of consumers in an economy if economic conditions are favorable meaning steady economic growth then delinquency rates tend to fall conversely as economic conditions deteriorate unemployment tends to rise as consumers are laid off from their jobs with less income it becomes more difficult for consumers to make their mortgage payments leading to a spike in delinquencies throughout the economy also banks and mortgage lenders track delinquency rates since any interruption in mortgage payments represents a reduction in revenue if delinquencies persist in a poorly performing economy bank losses can rise as fewer mortgage payments are received which leads to fewer new loans being issued fewer loans being issued to consumers and businesses can exacerbate the already poor conditions within an economy making a recovery more challenging 60 plus delinquencies vs foreclosurethe 60 plus delinquency rate is often added to another negative event measure the foreclosure rate for the same group of loans the two metrics provide a cumulative measure of the individual mortgages that are either not being paid or being paid behind schedule since 60 plus delinquencies are less than 90 days the loans have yet to enter the foreclosure process foreclosure is the legal process in which a bank seizes a home due to default or nonpayment of the mortgage payments by the borrower although each lender may differ typically 90 to 120 days past due a home loan enters the pre foreclosure process 