1 million more serious delinquencies on mortgages than before the pandemic

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Despite the short-term improvement, the number of borrowers with mortgage payments more than 90 days late surpassed the number of borrowers before the pandemic by more than 1 million last month.

In July, the 1.45 million seriously overdue borrowers who had not yet been foreclosed were down from 1.55 million in June and 2.25 million a year earlier, according to Black Knight’s latest report on the right at a glance. The equivalent number before the pandemic was well below 500,000.

The overall rate of delinquency in the country decreased to 4.1% and 2.2 million from 4.4% and 2.3 million a month earlier and from July 2020 – 6.9% and 3.7 million. That figure was 3.3% in February 2020, in the last full month before any outages due to coronavirus occurred in the United States.

As crime rates improve Along with the economic recovery, service companies are paying more attention to those still in payment arrears and increasingly facing long-term disasters. (Black Knight’s late payments include borrowers whose payments are suspended due to the pandemic.)

“Most patient people are now turning into delinquents and then more serious delinquency as events unfold,” Bob Hora, senior vice president of default operations at Cenlar, said in an interview. “Then the question arises: will they be able to make the current payment or will they need some modification? We are thinking percentage of these homeowners have lost the habit of paying for the last 18 months, and they will not be able to work even at a reduced rate. “

About 4,200 borrowers began foreclosure in July, the last month of the state moratorium, although this could expanded in some areas with the rise of the Delta variant. The rate of commencement of foreclosure decreased by 4.6% per month and 57.6% per year. The share of borrowers in active foreclosure fell to 0.26% from 0.27% in June.

At the state level, Mississippi has the highest rate of long-term borrowers at almost 7.7%, followed by 6.9% in Louisiana, 6.1% in Hawaii, 5.9% in Oklahoma and 5.8% in West Virginia. Likewise, the five highest serious delinquency rates were in Mississippi at 4.6%, Louisiana at 4.2%, Hawaii at 3.83%, Maryland at 3.81%, and Alaska at 3.8%.



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