With mortgage protections winding down and the federal eviction moratorium no longer in effect, a “significant” number of people have lost their housing payments, according to the Mortgage Bankers Association.
As The Ascent reported on Monday (December 20), the association says 5.43 million households missed mortgage or rent payments in October, up from 4.7 million the previous month.
Going deeper, this means that the percentage of homeowners’ mortgage payments rose from 3.2% in September to 3.8% in October, while 10.9% of renters either missed, delayed or reduced their rent payments in October, up from 9.6%. in the previous month.
The story suggests that many families have yet to recover from the financial effects of the COVID-19 pandemic, which is contributing to the rise in missed payments.
Inflation is only exacerbating the problem, LendingClub CEO Scott Sanborn told PYMNTS’ Karen Webster last month.
Read more: Inflation and the disappearance of stimulus payments pushed the paycheck to the top of consumers
LendingClub research, conducted in coordination with PYMNTS, found that the number of Americans living on paycheck to paycheck is rising, from 52% earlier in the year to 57% more recently. This is happening as the number of government support programs dwindle.
It’s important to note that even without government programs, there are some options for keeping a roof over your head, whether that means mortgage modifications – meaning the mortgage will be extended, every monthly payment reduced – or refinancing, which usually requires a credit score. decent.
Tenants can also try to work with landlords to come up with payment plans or negotiate reduced rents. As noted by The Ascent, although landlords can start to evict again, doing so can be costly and time-consuming – meaning some landlords may want to cut a deal rather than spend the time trying to evict tenants.