30% Failed to Make Housing Payments in June

[swag]

Many people are going to need a lot more help.

(and so are state and local governments, btw)

https://www.thestreet.com/mishtalk/economics/30-percent-failed-to-make-housing-payments-in-june?fbclid=IwAR2i8hYAlebjANEcCwd5oKdXkMPblmorLeugJOvMHgxugcor6vPy6UP4byE

37 percent of renters and 26 percent of homeowners are concerned that in the next six months they will face an eviction or foreclosure.

This hardship continues to be concentrated among renters, younger and lower-income households, and urban dwellers. Missed payment rates are highest for renters (32 percent), households earning less than $25,000 per year (40 percent), adults under the age of 30 (40 percent), and those living in high-density urban areas (35 percent).

. . .

After April’s 90% increase in the delinquency rate, another 723,000 homeowners became past due on their mortgages in May. That marks a 20% increase in the national delinquency rate, pushing it to its highest level since late 2011.

There are now 4.3 million homeowners past due on their mortgages or in active foreclosure – including those in forbearance who have missed scheduled payments as part of their plans – up from 2 million at the end of March

Serious delinquencies are on the rise as well, increasing by more than 50% over the past two months

However, Black Knight’s McDash Flash Payment Tracker shows a higher share of payments have been made thus far in June than at the same time in May, suggesting the rise in delinquencies may be leveling off

[Wellstone ruled]

1. This is something that needs to be watched.

If the average Mortgage is a thousand dollars,that is 4 trillion not going into the banking system.

[North Shore Chicago]

2. Republicans

Republicans better wake up and smell the coffee, because their rich friends will start hurting if the work-a-day folks continue to suffer. We actually SPEND money when we get it, not ship it off overseas in shell accounts. We ARE the economy!

[Johnny2X2X]

3. Help must be extended

The mistake laden jobs report for May has given legislatures the cover they need not to provide more help for people. Enhanced unemployment must be extended at least a few more months. Mortgage delays and help must be extended.

People keep talking about how we need to open the economy back up to fix things. Well the economy is open most places in this country. Even in MI we can do everything but go to concerts and gyms, so this is the economy we are now living in, 10.0%+ UE for a long haul.

The only thing that has prevented a total economic collapse is the enhanced unemployment that people are getting. Withyout that extra $600 a week, mortgage delinquencies would be absurdly high.

[Baked Potato]

4. Democrats can craft a campaign message on this issue.

Republicans will balk at helping the people.

[Iliyah]

5. July and thereon will be worst . .

A economy failure by yours truly - shithole and company.

[jcgoldie]

6. Yeah but how about that dow jones?

That's all that matters right? People's homes?!? Pfft!

[Laelth]

7. Yikes! k&r for visibility. n/t

-Laelth

[CrispyQ]

8. Federal aid for unemployment ends in July

and by October the corporations who took relief money can start laying off workers. The fed has all but guaranteed they will prop the stock market up, at least until Election Day. Too many Main Streeters gauge the economy by the DOW, and not by how much a hundred bucks buys you at the grocery store.

[missingthebigdog]

9. Eh. Maybe.

A closer look at the linked article- and the articles it is linked to- shows that the 30% statistic is based upon those who did not make a rent or mortgage payment in the first week of the month.

There are probably a lot of people who routinely do not pay rent until the tenth of the month, and many mortgages are not considered "late" until the fifteenth. There is no way to tell from the article whether this is new, or whether it is the standard practice of the tenants/ owners surveyed.

The same survey shows that, when looking at May's numbers, a similar percentage of people did not pay in full during the first week, but only 5% had failed to make any payment by the end of the month, and another 6% had made at least a partial payment.

I am not saying that there isn't a problem; I know people are struggling. I am just saying that there is no information about the methodology on this "study," so it is hard to know how accurate the numbers are, and the numbers that are reported are presented in a very misleading way.

Mylissia

[JustAnotherGen]

10. We need

A monthly 'stimulus'. Granted - it won't apply to me. . . But I'm smart enough and empathetic enough to know - That's a better use of my tax dollars than kickbacks to Trump's friends.

[uponit7771]

11. "up from 2 million at the end of March", 100% increase in post due mortgages but DOW Is near record

... high

[BamaRefugee]

12. A big part of my business (shut since March) involves the eviction/foreclosure process. Not that it

makes me happy, but that segment, as soon as I can reopen and the courts allow evictions again, is going to SKYROCKET.
It's no coincidence that the absolute best money making years I ever had was 2008-2009, it was like I was printing money.

Anybody who thinks the economy is gonna take off while there are literally people living in their cars and on the sidewalks is whistling past the graveyard.

[erronis]

13. Perfect scenario for the Kushner and other predatory types to take over more real-estate

This is how they do "business".

Bottom feeders who encourage loan/mortgage defaults and absolutely love it when their renters forfeit their deposits.

Easy money. Hire a bunch of thugs and sheriff deputies to clear out the property. Spray trump-branded disinfectant on all, and repeat.

Anybody remember CDOs (collaterized debt obligations) from the wonderful 2008-2009 debacle? They've been rebranded as CLOs (- Loan Obligations) - different acronym, same scheme.
https://www.investopedia.com/terms/c/clo.asp

They are still in business to rip off the average joe/mary. But apparently 30% of these types love being ripped off.