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What happens when the termination of a mortgage under the CARES Act ends?
Under the law, borrowers with FHA-backed loans were able to withhold payments, although they would still have to repay the missed amount later. The deadline for applying for a mortgage waiver has been extended until September 30, 2021.
Of the estimated 7.6 million FHA loans outstanding in May, 14.7% were overdue and 10.5% were severely overdue, according to data American Enterprise Institute analysis, an analytical center for public policy.
By March 2021, nearly two-thirds of participants had given up abstinence, but borrowers living in the lowest income areas were more likely to have been patient and more likely to stay, according to Federal Reserve of New York…
According to the AEI analysis, Atlanta and Houston are the cities most at risk of FHA delays. But the increased FHA delinquency is threatening homeowners and neighborhoods in many other urban areas across the country.
At the end of the grace period, borrowers can simply resume payments or change loans, but many other borrowers are likely to face foreclosures, according to AEI. In an existing seller market, these troubled owners can avoid foreclosures by selling at a high enough price to cover the mortgage, costs, and delinquencies. But certain areas may face greater exposure to price declines due to increased supply as borrowers either sell or lose their home to foreclosures, according to AEI analysis.
This list is based on the FHA mortgage loan delinquency AEI survey and shows the cities with the most delinquencies as of May 31st. By that date, the total number of foreclosures in the US was 16,053, of which 805,037 were serious loans. delinquent.
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