A new survey reveals that if given a choice, consumers are more likely to make their car payments than pay their mortgages.
According to the survey conducted by TransUnion, in which the firm monitored the payment habits of 4 million Americans, roughly 39 percent of borrowers who were delinquent on their mortgage payments were current on their auto loans.
In contrast, the survey revealed that 17.3 percent of consumers late on their credit card payments were current on their mortgage loans, while 9.5 percent of those delinquent on their car payments were still paying their mortgages on time.
"The study found that the hierarchy reversal had become even more widespread, with the percentage of consumers who are delinquent on their mortgages and current on their credit cards rising to as high as 7.4 percent in the third quarter 2010 from 4.3 percent in the first quarter 2008," the report said.
Meanwhile, mortgage records from Freddie mac indicate that the rate of seriously delinquent borrower with home loans backed by the government-sponsored enterprise dipped to 3.57 percent in February from 3.59 percent the previous month.