The number of mortgage delinquencies rose to a 20-year high in Q3 as borrowers increasingly found it difficult to make payments within the 30-day grace period, the Mortgage Bankers Association announced Thursday.

The percent of home loans with payments more than 30 days late rose to seasonally-adjusted 5.59%, the MBA announced -- the highest level since 1986. The group's survey began in 1972.

Telling stat

The delinquency statistic suggests that the housing correction "is far from over," according to economist Steve Affinito.

"It's not even the beginning of the end," Affinito told BloggingStocks on Thursday. "Generally during a housing slump, what you see first is a rise in unsold homes, and then a rise in delinquencies, mostly from homeowners who did not sell or could not refinance."

I just received notice from my Wells Fargo Bank (NYSE: WFC) granting their final approval, and if we can settle a couple remaining estate issues the deal is done. I am about to embark upon one of the greatest challenges of my life to date. My lovely wife and I are going to buy that challenge of a home left behind by my father-in-law. I, the man of a million options, intend to restore that house from the ground up. With the exceptions of the roof, a majority of the exterior wall space, and pretty much the entire foundation, that home needs complete replacement. It's a sturdy little shack, well worn and embraced with a self-made northwoods history. It sits on an acre of land and it has good potential, but boy is it ugly. At least we'll be doing our part to fight the sluggish real estate scene.

We'll be paying about $16,000 for it. That's for the acre of land, about 1,700 square feet of living space (not including attic and basement) and several out buildings which are all in good condition. We're asking the bank for about $60,000 to purchase the home and to return it to clean modern condition. When all the work is done the home should be worth between $70,000 and $80,000. That estimate doesn't include if I add any porches or decks or even expand out a room or two. I figure it will take about three years and about 70 trips to Home Depot (NYSE: HD).

I have the ability, the expertise and the Sears (NASDAQ: SHLD) Craftsman tools to pull off the job, but time will be a major problem. I guess I'll be sleeping five hours a night instead of six. Alas, a cowboy's work is never done. Professionals will be needed to install a new furnace, rough-in the plumbing, upgrade the electrical panel, and drill a new well. Most of the other work will be falling to myself and my dear wife. I hope she knows what she's in for!