More than 6 million households did not make their mortgage or rent mortgage payments during September, according to research published by Mortgage Bankers Association”™s (MBA) Research Institute for Housing America.
The report also found that 3% of mortgagors missed their payment at the beginning of April and 3% were still missing it at the end of September while 3% of renters missed making payments at the beginning of April and 7% were missing payments by the end of September.
Furthermore, the MBA determined that 13% of renters received permission from their landlord to delay or reduce their monthly payment. In aggregate, rental property owners lost as much as $9.2 billion in third-quarter revenue from missed rent payments. In comparison, nearly 20% of mortgagors received permission from their lender to delay or reduce their monthly payment, and the total missed mortgage payments were estimated at $19.4 billion for the third quarter.
“Rent and mortgage payment collections improved over the summer as more people went back to work, but high unemployment continues to place hardships on millions of U.S. households,” said Gary V. Engelhardt, professor of economics in the Maxwell School of Citizenship and Public Affairs at Syracuse University and the co-author of the report.
“There is growing concern that absent a slowdown in the number of coronavirus cases and another round of much-needed federal aid, millions of renters in the coming months face the prospects of falling further behind. With the current eviction moratorium expiring in January, the situation could be even more challenging. Many renter households across the country could find themselves with no place to live and no means to repay missed payments.”
