Federal foreclosure moratorium slated to end June 30, 2021
By Jeff Sorg, OnlineEd Blog
(March 1, 2021)
CFPB, WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued a report that warns of widespread evictions and foreclosures once federal, state, and local pandemic protections come to an end, absent additional public and private action. Over 11 million families are behind on their rent or mortgage payments: 2.1 million families are behind at least three months on mortgage payments, while 8.8 million are behind on rent. Homeowners alone are estimated to owe almost $90 billion in missed payments. The last time this many families were behind on their mortgages was during the Great Recession.
According to the CFPB report:
- Black and Hispanic families are more than twice as likely to report being behind on housing payments than white families.
- While mortgage forbearance – the option to pause or reduce payments temporarily – has dropped foreclosures to historic lows, 1 million homeowners are more than 90 days behind on payments and are likely to experience severe financial hardship when payments resume. Of these families, an estimated 263,000 families are seriously behind on their mortgages and not in forbearance, putting them at higher risk of foreclosure once federal and state moratoria end.
- 9 percent of renters, who do not have the same protections or options as homeowners, report that they are likely to be evicted.
- Black and Hispanic households are more likely to report being at risk.
- 28 percent of manufactured home residents reported being behind on their housing payments, compared to 12 percent of single-family home residents and 18 percent of residents in small-to-mid-sized multi-unit buildings.
The CFPB report, “Housing Insecurity and the COVID-19 Pandemic,” can be found here: Housing insecurity and the COVID-19 pandemic.
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