The number of foreclosures is going to increase significantly and likely that will occur extremely soon.
The number of people who failed to pay their mortgage in May 2020 rose to its highest level since 2011 as 4.3 million homeowners missed their mortgage payments, up from 2 million at the end of March As a result, the overall delinquency rate has increased to 8%. This rate includes borrowers who have arranged to delay or defer their mortgage payment by entering into a forbearance program with their loan servicer, as well as homeowners who have missed payments without such protection.
Florida is among the states with the highest delinquency rate. The states with the highest percentage of loans that aren’t current are Mississippi at 13%, with a delinquency rate of 13%, Louisiana at 12%, followed by New York, New Jersey and Florida, all at 11%.
Lenders are usually quick to sue after a serious non-payment as the next step in the process is foreclosure. However, moratoriums on foreclosure and the forbearance programs, which keep homes from being foreclosed on while homeowners are in the program, mean that foreclosure levels are currently at record lows. This likely will not last long. At some point the moratorium will end and lenders will file foreclosure actions against those who are not current.
Contact Cotzen Law if you are concerned about debts that you owe on your mortgage. We are extremely experienced at defending foreclosure actions and can certainly assist you in defending such an action.
