The number of people who failed to pay their mortgage last month rose to its highest level since 2011.
4.3 million homeowners missed their mortgage payments last month
In May, 4.3 million homeowners missed their mortgage payments, up from 2 million at the end of March, according to Black Knight, a mortgage data company. That brings the overall delinquency rate for May to 8%. The rate includes borrowers who have arranged to delay or defer their mortgage payment by entering into a forbearance program with their loan servicer, as well as homeowners who have missed payments without such protection. Those in forbearance are protected from being noted as delinquent in their credit report and are expected to work with their lender to arrange a repayment plan.
But it is not likely everyone in forbearance will ultimately be able to pay back what they owe andbanks and housing industry experts are keeping a close eye on the delinquency numbers to ascertain how many people are falling behind,whether they are in forbearance or not.
The report shows that serious delinquencies are increasing, up more than 50% over the past two months, with 631,000 homeowners now 90 days or more past due. But Black Knight’s tracking of mortgage payments on a daily basis shows that already a higher share of payments have been made in June than by this point in May, suggesting the delinquencies may be leveling off.
(read more at cnn.com)