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Mortgage Delinquencies Reaching Highest Level Since 2011?

Housing Bubble
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EDITOR NOTE: 4,300,000 Americans. That’s the number of homeowners who were more than the thirty days late in their mortgage payments in May. And what of the forbearance agreements aimed to help ease homeowners’ financial pressures? Many of the 4.3 million have already made them...and they’re still falling behind. As tens of millions of Americans continue to file unemployment claims, the overall picture of the economy isn’t looking any brighter. These delinquency figures also vary from state to state, some hit much harder than others. For those of you who are not as severely affected, perhaps even finding investment opportunities in this time of crisis, such a venture shouldn’t go unhedged, as all remains uncertain.

(Bloomberg) -- U.S. home-mortgage delinquencies climbed in May to the highest level since November 2011 as the pandemic’s toll on personal finances deepened.

The number of borrowers more than 30 days late swelled to 4.3 million, up 723,000 from the previous month, according to property information service Black Knight Inc. More than 8% of all U.S. mortgages were past due or in foreclosure.

The increase in delinquencies was smaller than the 1.6 million jump in April, when the economy ground to a halt nationwide. Still, the path ahead is clouded by the spread of new Covid-19 cases, uncertainty over business reopenings and the looming expiration of benefits that have helped jobless homeowners avert delinquency.

About 20.5 million Americans filed continuing claims for unemployment benefits in the first week of June, Labor Department figures show.

The delinquency count includes homeowners who missed payments as part of forbearance agreements, which allow an initial six-month reprieve without penalty. Many of those borrowers initially made payments despite qualifying for the relief plans, a share that has diminished as the crisis lingers.

Only 15% of homeowners in forbearance made payments as of June 15, down from 28% in May and 46% in April.

Black Knight also reported:

Mississippi had the highest delinquency rate in May, followed by Louisiana, New York, New Jersey and Florida. New York’s share rose to 11.3%. It peaked at 13.9% in December 2012.New Jersey’s rate was 11%, compared with the peak of 16.8% in December 2012. Florida’s share climbed to 10.5%. Its previous peak was 25.4% in January 2010.

Originally posted on MSN

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