There are millions of rental homes with tenants that have had difficulties paying their rent due to COVID-19.
Photo: Daryan-Shamkhali / Wunderstock
–
The year 2020 was particularly difficult for all the people who pay rent or have a current mortgage. Despite the CARES Act stipulating federal loan and rental payment forgiveness, tenants and homeowners lived with the anguish of not paying for much of the year. A study revealed that at least half of Americans suffered from this situation.
A new survey from GoBankingRates found that 46% of Americans missed one or more rent or mortgage payments, and that 25% had lost more than one of these deposits.
In many cases, people with a mortgage and who were falling behind in their payments, resorted to sell your home to avoid eventual foreclosure. Before losing their money, homeowners want to sell their home to move where they can find work or pay for a smaller space.
According to the study, banks have tried to find some way to work with people. While they simply can’t forgive late payments, they also don’t want to foreclose on countless late homes.
“I think it is surprising and it is not. COVID-19 was devastating for many people and businesses. Especially at the end of March 2020, when it all started and closed, the CARES law had just passed and many people lost their jobs and on April 1 they still had to pay their rent, ”says GOBankingRates content data researcher Andrew Murray . “So I imagine a lot of people who said they just missed a payment had to happen at some point in those first two months of COVID.”
At least 62% of Americans ages 18-24 said they did not make a payment, while that number drops to 54% for the 25-34 age group, according to the survey. 23% of the 55-64 age group saw themselves in the same circumstances. With these results it can be concluded that young people are the ones who have suffered the most from the financial problems of housing.
In this sense, the vast majority of Americans, about 67% had to incur some kind of debt, of which 21% have a debt range between $ 1,000 and $ 4,999.
A collateral problem with late payments is the effect on the credit score. Lenders and some rental owners report to credit bureaus if they are at least 30 days past due.
You may also like:
• What is Section 8? The federal rent voucher program
• How to apply and how the $ 25 billion in rental assistance works
• Is it better to apply for a home equity loan or HELOC?
– .
