Mortgage delinquencies to spike due to coronavirus outbreak – Daily News

on Apr14
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After hitting their lowest point in two decades, mortgage delinquencies are expected to spike in the months ahead due to the coronavirus outbreak, Irvine-based data firm CoreLogic reported Tuesday, April 14.

Nationally, 3.5% of U.S. home loans were 30 days or more past due or in some stage of the foreclosure process.

The rates were even lower in Southern California. In Los Angeles and Orange counties, 2.1% of mortgages were delinquent, and 3.4% we’re delinquent in the Inland Empire, CoreLogic reported.

However, mounting job losses since the COVID-19 pandemic swept the nation has raised the possibility of borrowers falling behind on mortgage payments in the months ahead, the data firm reported.

“Home loan delinquency and foreclosure rates were the lowest in a generation before the COVID-19 pandemic hit,” said CoreLogic Chief Economist Frank Nothaft.

“Recession-induced job losses will fuel delinquencies,” Nothaft added. “However, widespread foreclosures across America will likely be averted because of the home equity buffer that homeowners have and the available forbearance programs.”

At the start of 2020, CoreLogic found, homeowners with a mortgage also had an average of $177,000 in home equity.

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