US home mortgage delinquencies surged to the highest level since November 2011, according to a Monday report from Black Knight.
Total borrowers more than 30 days late skyrocketed to 4.3 million in May from 3.4 million in April, the report showed.
In addition, more than 8% of all US mortgages were past due or in foreclosure, according to Black Knight.
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The number of US home mortgage delinquencies has surged to the highest level in nine years as the coronavirus pandemic continues to hit family finances.
Total borrowers more than 30 days late surged to 4.3 million in May after a record jump to 3.4 million in April, according to a Monday report from Black Knight. In addition, more than 8% of all US mortgages were either past due or in foreclosure, the report showed.
The report also included homeowners that missed payments even though they had forbearance agreements in place, which allow six months of deferral without penalty.
Many borrowers who qualified for forbearance plans initially made payments, although the percentage has declined since the start of the pandemic — 15% of homeowners in forbearance plans made payments as of June 15, down from 28% in May and 46% in April.
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Even though the jump in delinquencies was less than the record spike in April, there’s still much uncertainty going forward due to the coronavirus pandemic. While all US states are moving forward with reopening efforts, a spike in new COVID-19 cases in some areas has led to fears that the pandemic could further decimate the economy.
The government stimulus that’s kept some families afloat amid the pandemic is also set to expire soon — at the end of July, the additional $600 per week that unemployed Americans have been collecting will end. More than 20 million Americans filed continuing claims for unemployment insurance in the week ending June 6, Labor Department figures show.
Mississippi had the highest rate of delinquencies in May, followed by Louisiana, New York, New Jersey, and Florida. according to Black Knight.