Borrowers in New Jersey who were 60 days or more behind in their bills tripled in December, compared to the same period in 2008. More than 7 percent of “jumbo” borrowers were delinquent by at least two months in the last month of 2009.

Jumbo refers to debts that are too large to be bought by government-supported lenders of last resort such as Freddie Mac or Fannie Mae.

Nationwide, the number of borrowers that have fallen behind by 60 days or more, rose to 9.2 percent in December of last year, up from 3.2 percent in December 2008, according to a Fitch Ratings.

Usually, these borrowers’ performance is driven by unemployment, said Vincent Barberio, a Fitch Ratings credit ratings analyst. “Once unemployment rates start to climb, a significant number of prime borrowers get under water on their mortgages,” he said.

About 14 percent of all prime-mortgage borrowers were “underwater” in September — meaning they owed more on their mortgage than their property was worth –, according to Fitch Ratings.

In New Jersey, the state’s unemployment rate has only started creeping away from it’s 26-year high of 9.8 percent. In November, it was 9.4 percent, according to the U.S. Bureau of Labor Statistics.

And some estimates put “white collar” unemployment at record high levels. In New Jersey, more than half of all those unemployed are “knowledge-based workers,” said James Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University.

“Initially the lower and moderate of the (home owner) segments were really hit by the crisis,” he said. “Now, we’re seeing the upper-end of the market hit, and these individuals are the ones that are in trouble now.”

The five states with the largest numbers of prime borrowers (those that are considered the “safest” by lenders) are:

– California: 10.8 percent, up from 3.5 percent (44 percent share of the market)
– New York: 5.8 percent, up from 1.8 percent (7 percent share of the market)
– Florida: 16 percent, up from 7.3 (6 percent share of the market)
– Virginia: 5.4 percent, up from 2.3 (5 percent share of the market)
– New Jersey: 7.1 percent in 2009, up from 2.3 (4 percent share of the market)

Related posts:

1. Continuation of Deterioration in Jumbo Mortgage Market according to Fitch
2. Jumbo Mortgage Delinquencies Soar
3. Jumbo Mortgages Rapid Deterioration Leads Moody’s to Increase Loss Projections