Lenders across the country are preparing for the largest wave of mortgage defaults in history.
Homeowners who have been affected by the coronavirus are able to ask to defer payments for up to 180 days on federally backed mortgages. However, they will have to make those payments up.
With no real sense of how long this might last, it is hard for lenders to predict what the future looks like and what the real damage will be to the economy.
“As many as 30% of Americans with home loans – about 15 million households –- could stop paying if the U.S. economy remains closed through the summer or beyond, according to an estimate by Mark Zandi, chief economist for Moody’s Analytics.”