At the end of the moratorium, more than 8 million households risk foreclosure or eviction

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Even if the country bounces back Coronavirus pandemicHarvard University’s New Home Report warns that more than 2 million homeowners are behind on their mortgages and face eviction from their homes in the coming weeks.

Most homeowners at risk of foreclosure are low-income families or families of color, researchers said in the 2021 National Housing Report. Congress has spent $ 10 billion to help homeowners catch up on their payments, but it it’s unclear whether the money will make it to families before mortgage companies start sending foreclosure notices. , The researchers say.

Meanwhile, researchers at Harvard University have found that millions of additional tenants are “on the verge of eviction.” Census data shows that 6 million households are still in default of rent and could face peasant evictions in late June, when federal protection against peasant evictions expires.

The Centers for Disease Control and Prevention’s order to suspend the eviction of certain peasants and the federal government’s restrictions on foreclosing on federally-backed homes will expire on June 30. Hospitality advocates have called on the Biden administration to extend the two, but there are no signs of an extension.

“There are so many tenants in financial difficulty that we are worried about the looming wave of peasant evictions,” a Harvard report said.

Over 7 million owners Coronavirus Assistance, Relief and Economic Security Act Last spring. This provision was later extended by the White House Biden. As of March 2021, most of these homeowners have started paying off their lenders, and some are even up to date with their lenders. But that still leaves about $ 2.1 million in their mortgages, researchers say.

Of those, approximately 325,000 homeowners have Federal Housing Administration loans at least 60 days overdue. The US Department of Housing and Urban Development said on Wednesday they were likely colored.

Karen King, 51, of Alabama, expects she can sign a mortgage lender because he can’t afford to pay five months at a time.

Karen king

Karen King, whose mortgage in Birmingham, Ala., Was delayed for five months, told CBS MoneyWatch he was “afraid” her house could be taken away.

King, 51, an employee of Tuscaloosa’s housing department, was late last year after his job was switched to part-time during a pandemic. She now rents $ 4,200. King returned full time in January, but could only pay the usual monthly mortgage amount and no more.

King has said he needs to make a special payment agreement with the mortgage provider, but he’s nervous about having this conversation because he’s not sure the lender will agree to the unusual payment plan.

“We can’t always pay extra for the mortgages so hopefully we can work with them to fix something,” King said, saying he’s prepared to work on five payments when the mortgage ends. Added. “I really want to postpone,” she said.

Colorful breeds like King have been hit hard by the loss of income during the pandemic, according to researchers at Harvard University. As a result, at the start of 2021, 17% of blacks, 16% of Hispanics, and 16% of Asian-American homeowners were in arrears on their mortgages. This is more than double the share of 7% of white homeowners.

“For households with secure jobs and good housing, their homes were a safe haven from the pandemic,” Harvard researcher Chris Herbert said in a statement. “But for millions of people who are struggling to cover their rents and mortgages, their housing situation is becoming increasingly volatile and these disparities are expected to continue as the economy recovers. “.

The gap of owning a home remains

The report also discusses the sharp increase in house prices since mid-2020, the shortage of available housing across the country, and the homeownership gap between black and white Americans.

According to the researchers, the percentage of blacks in the first quarter of 2021 was 46%, while that of white Americans was 74%. There was a slight statistical improvement in the gap, but the number was “still significant by historical standards,” they said.

Most inequalities persist due to income inequality between black and white households, the researchers say. In 2019, the median household income for bald heads was $ 76,100. For black-headed households, it was only $ 45,000, according to census data.

According to a report funded by Wells Fargo of Habitat for Humanity, the National Home Construction Association, “accumulating the savings needed for down payments and closing fees is difficult for most first-time buyers. It’s difficult, especially for rental households of color, ”said the National Association of Homebuilders.

The report recommends that investing more in down payment programs offered by state and local governments and directing those dollars to people of color will help close the gap.

At the end of the moratorium, more than 8 million households risk foreclosure or eviction

Source link At the end of the moratorium, more than 8 million households will be threatened with seizure or eviction

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