Over 4 million Americans are now skipping their mortgage payments
Source: Market Watch
Published: May 19, 2020 at 1:28 p.m. ET
By Jacob Passy
The pace of homeowners requesting mortgage relief because of the coronavirus pandemic has slowed considerably
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Fewer Americans are calling their mortgage servicers to ask for relief from mortgage payments, but the housing industry isnt 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%.
Read more: https://www.marketwatch.com/story/over-4-million-americans-are-now-skipping-their-mortgage-payments-2020-05-18?mod=home-page
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Mortgage companies can require homeowners to pay the deferred portion in one lump sum. But in some cases, you may be able to negotiate with your mortgage servicer to pay extra each month until the deferred amount is repaid or add the suspended payments to the end of the loan. Another option is to apply for a loan modification, in which the loan company might add the deferred amount to the balance, increase the length of your loan or reduce the interest rate.
https://www.cnn.com/2020/04/13/success/mortgage-forbearance-coronavirus/index.html
wryter2000
(46,023 posts)Here goes the housing market again. I hope my mortgage doesn't go under water again.
bronxiteforever
(9,287 posts)iluvtennis
(19,835 posts)30 year mortgages, so extedning the lon by 6-12 months should be easy to do...but the paperwork bureaucrats will find something wrong with that approach.
forgotmylogin
(7,521 posts)Like a pandemic and 25% unemployment.
MadLinguist
(788 posts)not because fewer homeowners want or need the relief -- that would be my guess.
Sucha NastyWoman
(2,741 posts)Dont just do nothing. They really dont want 4 million properties that they will need to insure and maintain.
Massacure
(7,515 posts)Most home owners do not need to pay the their arrears at the end of forbearance. Since then, Fannie May and Freddie Mac have stated that all loans backed by them can have the missed months tacked on to the end of the loan without any additional interest or fees. IE, a 30 year mortgage becomes a 366 month term instead of 360 months.