4% of homeowners stop making mortgage payments amid coronavirus shutdowns

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Almost 4% of mortgage borrowers have stopped making payments as coronavirus puts millions out of work.

in the past three weeks, with the virus battering the economy. The government is requiring lenders handling payments on federally backed loans to give borrowers grace periods of as much as six months at a time with no penalties.to slow the spread of COVID-19 continues to create hardships for millions of households, and more are contacting their servicers for relief,” Mike Fratantoni, MBA’s chief economist, said in a statement.

On Thursday, analysts from JPMorgan Chase & Co. wrote that the use of forbearance is likely to rise along with unemployment, and “many servicers would be unable to sustain six months of forbearance advancements on 10% to 20% of their book.” Borrowers with relatively low credit scores, many of whom live paycheck to paycheck, are most likely to seek relief. Over the past two years, Ginnie Mae has guaranteed $583 billion of 30-year mortgages with FICO scores below 715, according to data compiled by Bloomberg.

 

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I'm sure they have to stop too. Money itself may become the premium instead of toilet paper.

...and the rich developers and investors are circling like vultures overhead...

Wait till next month.

Short sales coming...

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