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Tuesday, May 19th, 2020

Over 4 million Americans are now skipping their mortgage payments

Author:     Jacob Passy
Source:     Market Watch
Publication Date:     May 3, 2020 at 2:09 p.m. ET
 Link: Over 4 million Americans are now skipping their mortgage payments
Stephan:   It is my view we are heading into a real estate crisis. I see it as arising from three real estate trends: First, sea rise, and the collapse of the value of coastal real estate. Second,  people's inability to pay their mortgages.  Third, a corporate reappraisal, as a result of the pandemic, about whether they actually need the same square footage of costly large office buildings, or whether in a number of situations, employees could work from home. This report lays out the home mortgage situation. If you are planning to not pay your mortgage please take a look at this: https://www.marketwatch.com/story/the-no-1-mistake-to-avoid-if-youre-skipping-your-mortgage-payments-2020-04-28?mod=article_inline  
More than 4 million Americans have stopped making mortgage payments because of economic hardship caused by the coronavirus pandemic.
 Credit: Getty

Fewer Americans are calling their mortgage servicers to ask for relief from mortgage payments, but the housing industry isn’t out of the woods yet.

More than 4.1 million homeowners are in forbearance plans now, according to the latest data from the Mortgage Bankers Association.

While mortgage servicers are still facing stress because of the record deluge of requests for payment relief, signs suggest that homeowners’ prospects have improved as parts of the country have begun to emerge from coronavirus stay-at-home orders.

Overall, 8.16% of all mortgages were in forbearance as of May 10, meaning borrowers can either skip or make reduced payments, the trade group said. That was up from 7.91% as of May 3, which is the smallest increase since March. Forbearance requests dropped from 0.52% of the total mortgage volume to 0.32%.

“There has been a pronounced flattening in loans put into forbearance — despite April’s uniformly negative economic data, remarkably high unemployment, and it now being past May […]

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