A study shows Missed Payments Stabilize In June At Alarming 30% Level.
37 percent of renters and 26 percent of homeowners are concerned that in the next six months they will face an eviction or foreclosure.
This hardship continues to be concentrated among renters, younger and lower-income households, and urban dwellers. Missed payment rates are highest for renters (32 percent), households earning less than $25,000 per year (40 percent), adults under the age of 30 (40 percent), and those living in high-density urban areas (35 percent).
Struggle in May, Struggle in June
Separately Black Knight reports Mortgage Delinquencies Increase Another 20% in May to Hit Highest Level Since 2011.
- After April’s 90% increase in the delinquency rate, another 723,000 homeowners became past due on their mortgages in May. That marks a 20% increase in the national delinquency rate, pushing it to its highest level since late 2011.
- There are now 4.3 million homeowners past due on their mortgages or in active foreclosure – including those in forbearance who have missed scheduled payments as part of their plans – up from 2 million at the end of March
- Serious delinquencies are on the rise as well, increasing by more than 50% over the past two months
- However, Black Knight’s McDash Flash Payment Tracker shows a higher share of payments have been made thus far in June than at the same time in May, suggesting the rise in delinquencies may be leveling off
Foreclosures and Evictions
The initial Cares Act prohibited foreclosures and eviction until May 17.
It was extended until June 30, 2020 under guidelines issued by Fannie Mae, Freddie Mac, FHA, VA and USDA.
On June 17, the FHFA announced that the June 30 moratorium expiration is now extended for Fannie Mae and Freddie Mac mortgages until August 31, 2020.
Rent Rules Vary Widely
In contrast to mortgages, rental evictions vary widely.
If you are a small-time landlord in a state where it is hard to evict, you will have a problem paying the mortgage on your property.
How Hard is it To Get Evicted in Your State?
Some states like texas offer no protection. In other states including Massachusetts and Delaware, it is very difficult to evict a non-paying tenant.
For further discussion, please see How Hard is it To Get Evicted in Your State?