Author Topic: 30% OF AMERICANS DIDN'T MAKE THEIR HOUSING PAYMENTS  (Read 101 times)

0 Members and 1 Guest are viewing this topic.

Offline RomanCatholic1953

  • Hero Member
  • *****
  • Posts: 7649
  • Reputation: +2545/-101
  • Gender: Male
  • I will not respond to any posts from Poche.
30% OF AMERICANS DIDN'T MAKE THEIR HOUSING PAYMENTS
« on: June 23, 2020, 09:47:06 AM »
  • Thanks!0
  • No Thanks!0
  • 30% OF AMERICANS DIDN'T MAKE THEIR HOUSING PAYMENT IN JUNE
    Published: June 22, 2020








    SOURCE: ZEROHEDGE


    A stunning 30% of Americans didn't make their housing payment for June - a figure that is likely going to ripple through the housing industry in coming months. According to a new survey by Apartment List, the rate is similar to May and shows that even though other industries are rebounding, the situation has not yet improved meaningfully in housing.
    These figures stood at 24% in April and 31% in May, before falling slightly to 30% in June. One third of the 30% in June made a partial payment, while two thirds made no payment at all.

    "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). While the missed payment rate for mortgaged homeowners is just 3 percentage points lower than renters," the survey showed.

    Despite the trend of missing payments at the beginning of the month, households have been able to play catch-up later in the month and "narrow the gap" by making payments in the middle of the month. This was the case in May, where the missed payment rate "dropped from 31 percent at the beginning of the month to 11 percent at the end."
    We'll see how long people can play catch up.
    Meanwhile, as the survey notes, delayed payments in one month are a strong indicator for coming months. 83% of those who paid on time in May did so in June. Meanwhile, only 30% of those who were late in May have made their payment in full for June.
    This means the data for the beginning of July is likely to be just as ugly as June.

    And, rightfully so, there continues to be concern over eviction notices in the coming months. The survey found that: "over one-third of renters are at least 'somewhat concerned' that they will be served an eviction notice in the coming six months."
    The number rises to 56% when polled just among those who have not yet paid their full rent for June.

    Recall, just days ago we wrote that Americans had already skipped payments on more than 100 million loans while, at the same time, job losses continue to accelerate.
    "The number of Americans that filed new claims for unemployment benefits last week was much higher than expected," we noted.
    To put this in perspective, let me once again remind my readers that prior to this year the all-time record for a single week was just 695,000. So even though more than 44 million Americans had already filed initial claims for unemployment benefits before this latest report, there were still enough new people losing jobs to more than double that old record from 1982.
    That is just astounding. We were told that the economy would be regaining huge amounts of jobs by now, but instead job losses remain at a catastrophic level that is unlike anything that we have ever seen before in all of U.S. history.

    SHARE THIS ARTICLE...

    Offline SimpleMan

    • Full Member
    • ***
    • Posts: 716
    • Reputation: +257/-68
    • Gender: Male
    Re: 30% OF AMERICANS DIDN'T MAKE THEIR HOUSING PAYMENTS
    « Reply #1 on: June 23, 2020, 10:01:43 AM »
  • Thanks!0
  • No Thanks!0
  • I have considerable experience in the housing finance industry, and I can tell you that unless provisions are made in advance (often with a fee to set up the escrow account needed), you cannot make partial payments on your mortgage.  The borrower might think "well, it's not as though I'm not paying anything at all, I am willing to pay, I just can't pay the whole thing right now, I'll make another payment in two weeks".  It doesn't work that way.

    Absolutely, technically speaking, if you fail to make your payment by the first of the month (or whatever date is on your mortgage, it's usually the first), you are in default, and the entire amount of the mortgage is due and payable (acceleration clause), otherwise the lender can foreclose.  As a practical matter, you have fifteen grace days, and then there is a late charge (usually 4 percent) for the period from the 16th to the end of the month.  You have people who pay that late charge month after month --- that's how overextended they are.  And again, as a practical matter, the lender will "work with you".  They do not want to foreclose.  Banks don't want to own houses.  Banks don't want to have to sell houses to get their money.  Nobody wins that way (except buyers at foreclosure sales who can get houses "on the cheap").  It is very rare for a foreclosure to take place within six to nine months.  A year is more like it.

    This industry is heavily regulated and audited out the wazoo, so I'm sure huge allowance is being made in the industry these days, due to COVID-19 and all the lost income that has come with it.


    Offline Viva Cristo Rey

    • Hero Member
    • *****
    • Posts: 8571
    • Reputation: +2441/-373
    • Gender: Female
    Re: 30% OF AMERICANS DIDN'T MAKE THEIR HOUSING PAYMENTS
    « Reply #2 on: June 24, 2020, 03:32:15 AM »
  • Thanks!0
  • No Thanks!0
  • To live with the Saints in Heaven is all bliss and glory....To live with the saints on Earth is just another story!  (unknown)

    Offline Viva Cristo Rey

    • Hero Member
    • *****
    • Posts: 8571
    • Reputation: +2441/-373
    • Gender: Female
    Re: 30% OF AMERICANS DIDN'T MAKE THEIR HOUSING PAYMENTS
    « Reply #3 on: June 24, 2020, 03:32:41 AM »
  • Thanks!0
  • No Thanks!0
  • All because of democrat communists. 
    To live with the Saints in Heaven is all bliss and glory....To live with the saints on Earth is just another story!  (unknown)


     

    Sitemap 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16