Home-Mortgage Delinquencies Surged

Home-Mortgage Delinquencies Surged


The worst has yet to come for the real estate market as home-mortgage delinquencies surged to their highest level in nine years as the virus-induced economic downturn continues to crush household finances.

Home-Mortgage Delinquencies Surged

Property research firm Black Knight Inc. reports total borrowers more than 30 days late surged to 4.3 million in May, up 723,000 from the previous month. This means at least 8% of all US mortgages were either past due or in foreclosure. 

The report said those who qualified for forbearance made payments early in the pandemic. However, now, the percentage is much lower, some 15% of homeowners in forbearance agreements made payments as of June 15, down from 28% in May and 46% in April. A forbearance agreement allows homeowners to defer mortgage payments for up to six months, but afterward, borrowers must repay. 

Something we have worried about since we read that renters and homeowners were allowed to skip payments for a short period. What happens after that time?

A repayment of forbearance is usually in one lump sum at the end of the six months. So it’ll be around the fall season when borrowers will have to pay back the owed money.

Repayment could be a severe problem for many, which could lead to a wave of forced selling. The forbearance has only delayed the downturn in the housing market – as the worst has yet to come. 

In a separate report, at least 30% of Americans didn’t make their housing payment for June.

Prepare for a Wave of Foreclosures

Before initiating a foreclosure, the lender must serve a notice of default and the action recorded with the register of deeds. Not less than ten (10) days after the recording of the notice of default, the borrower must receive a copy by mail; likewise, others such as junior lien holders or those have requested such notification.
Someplace in here, you would talk with your lender and work out a way to get some time to avoid foreclosure.

If the notice of default fails, a notice of foreclosure sale, along with the notice of default, must be sent to the borrower and all interested parties 20 days before the date of the auction. 

Nebraska now primarily operates as a title theory state where the property title remains in trust until payment in full occurs for the underlying loan. The primary statute for which such foreclosures begin is called the Nebraska Trust Deeds Act. Foreclosure is a non-judicial remedy under this theory.

Facing Foreclosure and Need Help

Contact Professionals

– Any time there’s a threat of losing your house, your banker may be able to refinance the loan, or your creditors may be able to give you repayment options. Contact a credit counselor. Contact a bankruptcy attorney. You need to know your options so you can make informed decisions.

Contact a professional real estate investor

.  You may want to sell your home fast to get out of the problem or to save your credit rating. Styl Properties, Inc. is here to help homeowners out of the stressful situation.  As investors, we can help homeowners out of just about any situation, no matter what!

There are no fees, upfront costs, commissions, or anything else.  We offer the simple truth about your home and how we can help you sell it fast.

FREE information on How to sell your house fast

Styl Properties, Inc. is here to help homeowners out of any distressed situation.  

As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what!  There are no fees, upfront costs, commissions, or anything else.  We offer the simple truth about your home and how we can help you sell it fast.

Give us a ring. We would love to help you understand the process and to answer all of your questions. You can reach us at 402 999.0577

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