Approximately 4.7 million mortgages are in some stage of forbearance at this point. This represents approximately 8.8% of all home loans. The number of borrowers with secured agreements to delay payments rose from 4.5 million to 4.7 this week. This translates into 27,000 new forbearance agreements a day.
This pace of loan forbearances has fallen by 85% from April figures.
The single biggest reason for this surge in mortgage forbearances is attributed directly to the COVID-19 pandemic, which has forced 36.5 million Americans into furloughs or out right job loss.
The loans represented in forbearance equal approximately $1 trillion in unpaid principal.
It is projected that by the end of June, nearly one in 8 mortgages will be in some form of forbearance.
Estimates for the worst-case scenarios project 4.9 million loans coming into forbearance by the end of May. This represents approximately 9.2% of active mortgages. By the end of June that number could rise to 5 million.
The very worst case scenario is our projecting either 5.4 million loans in forbearance, representing 10% of all home mortgages, or 6.3 million mortgages or 11.8% by the end of June.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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