Concerns grow as foreclosure moratoriums approach date


An analysis by QuoteWizard, a LendingTree company, of U.S. landlords and tenants found that a growing number of people are increasingly concerned with keeping a roof over their heads as the dates of foreclosure moratoria rise. are approaching and unemployment levels remain volatile.

According to Nick VinZant, senior research analyst and insurance expert at QuoteWizard, one in four people fear facing foreclosure or eviction in the next two months.

“Nationwide, housing costs have increased by almost 70% over the past decade,” VinZant said in the report. “Income, meanwhile, only increased by 30% over the same period. Combine this disparity with record pandemic unemployment and we find ourselves in a situation where housing has simply become unaffordable for many people.

In February, President Joe Biden coordinated an extension and expansion of forbearance and foreclosure relief programs to help struggling homeowners by:

  • Extend the moratorium on foreclosures for landlords until June 30, 2021;
  • Extend the mortgage forbearance registration window until June 30, 2021 for borrowers who wish to request forbearance;
  • Allow up to six months of additional mortgage forbearance, in three month increments, for borrowers who forborne by June 30, 2020.

The top 10 states with the percentage of people facing foreclosure include:

  • Rhode Island: 14.5%
  • Louisiana: 12.1%
  • Arkansas: 11.5%
  • Nevada: 10.9%
  • Georgia: 9.5%
  • Texas: 8.8%
  • Mississippi: 8.7%
  • Alaska: 8.0%
  • South Carolina: 7.5%
  • New Jersey: 7.1%

With regulators and managers putting plans in place to help distressed borrowers, the deadline for lifting foreclosure moratoria looms as many are still behind on their mortgages. The QuoteWizard study found that the top 10 states with the percentage of people overdue on mortgage payments include:

  • Arkansas: 12.2%
  • Mississippi: 11.8%
  • New York: 10.3%
  • Georgia: 9.4%
  • Connecticut: 9.0%
  • Delaware: 8.9%
  • New Jersey: 8.3%
  • Texas: 8.0%
  • Nevada: 7.4%
  • Louisiana: 7.9%

The threat of eviction is even greater, according to the report, which found that 11 states include more than 25% of people who fear they will not be able to pay rent in the next two months.

The study found that the top 10 states with the percentage of people facing deportation include:

  • Maine: 70.2%
  • Arizona: 40.8%
  • Colorado: 40.1%
  • Wyoming: 38.4%
  • Rhode Island: 38.4%
  • Arkansas: 33.1%
  • Alaska: 32.3%
  • Nebraska: 29.4%
  • Wisconsin and Oregon: 27.3%
  • Ohio: 27.0%

In terms of the racial divide, the report found that people of color have a harder time paying off their mortgage, with Asian, Black and Hispanic communities two to three times more likely to face foreclosure or delay. on their mortgage payments than white communities. White communities, however, faced a similar struggle over paying rent, with more than 45% of both white and black communities fearing eviction within the next two months.

Click here to read the full report, “Growing Fear of Eviction or Foreclosure” by Nick VinZant.

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