According to a recent DSnews report, roughly 1.2 million mortgagers fear losing their homes. A survey found that more than a million Americans with a mortgage are fearful they will be evicted or their home will be foreclosed in the next month. According to the Mortgage Bankers Association’s Research Institute for Housing America, almost five million American households did not make their rent or mortgage payments in December. Additionally, 2 million renters and 1 million mortgagors are concerned about being evicted or foreclosed. Compared to previous periods, the data showed that the amount of homeowners and renters behind on payments has decreased since last year.
WHAT ELSE DID THE STUDY FIND?
Gary V. Engelhardt, Professor of Economics in the Maxwell School of Citizenship and Public Affairs at Syracuse University, stated “Gradual improvements in the labor market and economy helped more renters and homeowners make their housing payments at the end of 2020. However, the COVID-19 pandemic continues to cause financial stress for millions of Americans, and particularly for those who rent and have student loan debt. Despite 5 million renters and homeowners not making their December payment, fewer believe they are at risk of eviction, a foreclosure, or would be forced to move in the next 30 days. This confidence is perhaps an indication that direct checks and enhanced unemployment benefits, rental assistance, mortgage forbearance programs, and a federal eviction moratorium have so far been effective in keeping people in their homes”. The study revealed that property owners impact the ability or inability for renters to make payments. The study found that “10.7% of renters missed one payment over the three quarters, 4.0% missed two payments, 2.7% missed three payments, and 5.4% missed four or more payments; 12% of renters received permission from their landlord to delay or reduce their monthly payment; In aggregate, rental property owners lost as much as $7.2 billion in fourth-quarter revenue from missed rent payments. This was down from over $9.1 billion in the third quarter”. Hopefully, the administration of the vaccine will continue to help reopen the economy. This will allow Americans to get back to work and making their payments.
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Click here to read the full MBA study.
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