May 2020 has shown the highest number of unpaid mortgage rates since 2011 with the COVID-crisis leaving many homeowners without jobs and regular income. While 2 million homeowners missed their mortgage in March 2020 amidst pandemics, this number increased to 4.3 million people missing their mortgage payments in May. The numbers include mortgage users who had filed for forbearance during this period as well. Those who had filed for forbearance and gotten approved by mortgage servicers won’t have their credit score affected by late payments.
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More Than 4 Million Homeowners Missed Mortgage Payments in May 2020
According to a mortgage data company, Black Knight, the delinquency rate for late mortgage payments reached 8% in May. Mortgage users who had filed for forbearance and managed to postpone their payments won’t contribute to the delinquency rate since their credit scores won’t get affected by late payments recorded in the period from March to May 2020. Homeowners that are using mortgage services and who were not approved for postponing mortgage payments will have their credit scores affected as a consequence. Whether in forbearance or not, the housing industry and banks are closely monitoring the ability of mortgage users to pay off their mortgage.
Delinquency Rates 50% Higher in Only Two Months
Since March 2020 when 2 million homeowners failed to pay their mortgage rates, the delinquency rate increased by over 50% in only two months. That is how mortgage data operators have reported 4.3 million late mortgage payments including forbearance approvals.
Delinquencies Decreasing in June – Homeowners Recovering
Mortgage payments are tracked daily by mortgage data companies, proving that the level of delinquency is slowly decreasing in June, especially when compared to May reports on the late payments. However, only 15% of forbearance users have made mortgage payments in June.
