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Back on June 11th I told you that as many as 4 million homeowners were already in forbearance.
Forbearance means they’re not currently paying their mortgage payments but have gotten approval to do so from their lender.
This means they’re not in danger of foreclosure.
Now that number is likely higher.
According to a survey done by Apartment List an estimated 30% of homeowners couldn’t pay their mortgage in June.
As of December 2019 there were an estimated 129 million households in the US.
That means there’s an estimated 38.7 million households nationwide who are having home payment issues.
The US Census Bureau estimates the average household has 2.58 people.
And that means this issue is affecting 100 million Americans – men, women, and children.
This problem is horrific for the households involved… The fear, anxiety, and uncertainty can crush people.
According to the same survey, 26% of homeowners are concerned about foreclosing on their house in the next 6 months.
As of this writing there’s been an outright ban via the Federal CARES legislation passed on March 29th that prevented foreclosures in the short term.
But that moratorium ends on June 30th for people whose loans are owned by Fannie Mae, Freddie Mac, FHA, VA, and USDA loans.
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What about other types of loans?
That varies state to state but those moratoriums are ending soon too.
If this survey is correct that means an estimated 38.7 million households are in danger of foreclosure.
In the 11 years between 2006 and 2016 an estimated 10 million homes were foreclosed. This during one of the worst times ever for the home market during the Financial Crisis.
Today there are almost 4X that many households in danger of foreclosure and we’re only 4 months into this coronavirus crisis.
I knew the numbers were bad because I’ve followed this for months now. But this is horrific.
Not just for the families involved.
But for the entire economy as I outlined in the following articles.
64 Million Americans Have No Emergency Savings Fund. This highlights the effects on individuals.
Our article from June 3rd talks about the affects of people not paying their bills. And highlights how this will harm banks, financial service companies, and the entire credit market.
This crisis is even leading to major issues at hospitals too.
Like I’ve said in many of these articles… I don’t know what the answers to all these problems are.
But what I do know is that these historically bad economic issues affect us all.
And I also know we need to fix these major economic issues soon or thing will get even worse than they already are where 29.1 million Americans are out of work.
This mass unemployment and the ongoing coronavirus pandemic are the two underlying issues that need solutions before the other things are fixed.
Protect yourself and your investments by reading our article – 3 Stocks That Will Earn You High Returns In The Coming Depression.
Always In Your Service,
Chief Editor - Jason Rivera
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