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More than 2.1 million Americans were on forbearance as of mid-May 2021, according to a recent forbearance and call volume survey from the Mortgage Bankers Association. One in 4,078 homes was the subject of a foreclosure request in the first quarter of 2021; in the second quarter, those numbers were down with 223,671 properties facing foreclosure nationwide, according to ATOM Data Solutions’ 2021 Vacant Properties and Zombies report.
On June 25, the Federal Housing Administration announced additional assistance for homeowners struggling to make mortgage payments. This assistance includes the extension of federal moratoriums on foreclosures and evictions for all single-family mortgages insured by the FHA, as well as extended COVID-19 forbearance application deadlines and a new housing retention option called COVID- 19 Advance Loan Modification (COVID-19 ALM), available to borrowers who are more than 90 days past due or have reached the end of their COVID-19 forbearance.
In addition to federal aid, many major mortgage lenders, including Wells Fargo and Bank of America, have temporarily suspended foreclosures. Other smaller banks across the country also suspended evictions and foreclosures in late spring. The Consumer Financial Protection Bureau (CFPB) is expected to pass a rule by August that would require mortgage agents to allow homeowners until the end of 2021 to resume their payments.
Sundae analyzed state data from the subsequent U.S. Census Household Pulse Survey if respondents are caught up with their mortgage payments. To understand how the economic impacts of COVID-19 affected homeowners’ mortgage payments, Sundae compared the most recent available data collected from May 12 to 24, 2021 and data collected from April 23 to May 5, 2020. Sundae also calculated the percentage of households that lost income and fell behind on mortgages; and the percentage of unemployed residents who fell behind on payments. Each data point also includes the state ranking.
Distressed homeowners have fared better than renters overall, with data showing faster recovery for those with mortgages due to factors such as low interest rates and homeowners receiving more money. protection as tenants from the $ 2 trillion CARES Act. The Consumer Financial Protection Bureau offered another lifeline on June 28 by issuing a final decision to amend Regulation X, putting in procedural safeguards for the time being to give borrowers a full consideration of mitigating the losses before lenders can initiate foreclosure proceedings on various mortgages.
Keep reading to find out what programs (if any) state governments have in place for additional help, and how homeowners are doing in your state.