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Homeowners Struggling to Make Mortgage Payments

Apartment List found that 31% of Americans made either a partial house payment or no payment at all in May—an increase from the prior month. 

Twenty-two percent of homeowners made no housing payments in May. Also, those who work remotely have had an easier time paying for housing, with a May delinquency rate 10 percentage points lower than those going into the office. 

The report found that 69% of renters and homeowners paid a full housing payment in May, which is considerably lower from April’s 76%. Just 12% of renters and homeowners made no payment in April, which is nearly half of the 22% in May. 

Those who struggled to make payments in April also struggled to make payments in May. The report found that of those who made a full payment in April, 81% were able to make full payments in May. 

However, 60% of people who struggled in April did not make a payment in May, while 60% made just partial payments. 

Lower-income households are struggling the most, as 71% of homeowners making under $75,000 per year did not pay their housing bill. 

Despite recent numbers, those with a mortgage are showing improved confidence if they needed to shelter-in-place through June. 

The survey found in April that 6% of homeowners would not be able to pay their mortgage. That saw a slight decline to 4% in May. 

As of April 30, more than 3.8 million homeowners are in forbearance plans, representing 7.3% of all active mortgages, according to the latest data from Black Knight. Together, they account for $841 billion in unpaid principal and include 6.1% of all GSE-backed loans and 10.5% of all FHA/VA loans.

This is an increase from Black Knights April 24 data, when more than 3.4 million homeowners, or 6.4% of all mortgages, have entered into COVID-19 mortgage forbearance plans.

According to Black Knight CEO Anthony Jabbour, the recent Federal Housing Finance Agency (FHFA) announcement of a four-month limit on advance obligations for servicers of mortgages backed by Fannie Mae and Freddie Mac provides the industry with some much-needed clarity.

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.

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