Does anyone have similar data for missed commercial lease or mortgage payments?
32% of U.S. households missed their July housing payments
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Re: 32% of U.S. households missed their July housing payments
#12Although this appears very alarming, it's also worth noting that due to covid it's allowed for them to defer payments for a bit, and that is included in this statistic.
I've had a few people I know put in for deferments simply because they were available. I'm going to be more concerned in 3 months or so when these options are off the table.
I applied for a deferment on my existing mortgage (figured time in the market/savings would be better than paying the bills), but my mortgage broker cautioned that it could affect future refinances and loans since while the missed payments wouldn't affect my score, simply having the forbearance note on my account would be enough to spook a future lender.
Re: 32% of U.S. households missed their July housing payments
#13The report for the underlying survey (which the CNBC article was kind enough to link) is very readable and contains additional useful information: https://www.apartmentlist.com/research/july-housing-payments The spin in the CNBC article about late payment seems misleading, or at least, not supported by the survey: CNBC: "Almost 90% of households had paid some or all of their rent or mortgage payment by the end of Jun…
>> 89 percent of respondents reported that they had paid their June bill in full
I'd posit that a survey of payers likely understates delinquency rates. For one thing, it's a bit embarrassing to admit to a stranger that you cannot make your payments. Further, in today's surveillance state, why would anyone trust that the person asking a question is simply doing a survey? Many people might think the inquiry is coming from their landlord, bank, or some government agency (like INS) or secret police -- in which case they might not voluntarily admit that they are behind on their obligations.
Re: 32% of U.S. households missed their July housing payments
#14one for misleading article title
Re: 32% of U.S. households missed their July housing payments
#15Although this appears very alarming, it's also worth noting that due to covid it's allowed for them to defer payments for a bit, and that is included in this statistic.
So the payments get deferred, but if families aren't earning any money (e.g. lost job or furloughed) for these missed months, how will they catch back up? Where does the extra money come from?
The government is giving them an extra $2,400 a month. It’s taking some time to get distributed, but it’s going out.
Re: 32% of U.S. households missed their July housing payments
#16Although this appears very alarming, it's also worth noting that due to covid it's allowed for them to defer payments for a bit, and that is included in this statistic.
It appears alarming because it's spun that way. Look at the actual survey the article references and you'll see 89% of missed first-week payments in June were paid in full with late payments. Basically, some people were late on their rent/mortgage payment last month, still ended up paying it in full, and CNBC wants to convince you that this means the payments missed in the first week of July won't be made at all; Jul…
>> still ended up paying it in full
with the help of $600 per adult per week from the gov't. what happens when/if the PUA subsidy is not extended beyond July 31?
Re: 32% of U.S. households missed their July housing payments
#17Earlier quoted context omitted.
It appears alarming because it's spun that way. Look at the actual survey the article references and you'll see 89% of missed first-week payments in June were paid in full with late payments. Basically, some people were late on their rent/mortgage payment last month, still ended up paying it in full, and CNBC wants to convince you that this means the payments missed in the first week of July won't be made at all; Jul…
>> still ended up paying it in full with the help of $600 per adult per week from the gov't. what happens when/if the PUA subsidy is not extended beyond July 31?
Yeah, my impression is that there might be some major issues if the 'PUA subsidy' isn't extended, but I'd love to hear from people who know more about this. Anecdotally I've heard that there are a ton of people that won't be able to pay rent, commercial or personal.
And part of the issue seems to be that some of them at least have to pay the rent for missing months too? Again, I don't know much about this so I hope I'm wrong.