More than 80% of Forbearances Are Approaching 12-Month Term
The latest loan performance data shows that as of November, the majority of active forborne loans have been in forbearance since April. (CoreLogic)
Its relatively bifurcated pattern indicates that the majority of the loans are either current (36.7%) or have missed at least 6 payments (43.2%); more than 1-in-3 (37.6%) have been in nonpayment since May and 1-in-4 (25.9%) in nonpayment since April. It is no surprise the longer the loans stay in forbearance, the more missed payments have accumulated – as homeowners who have experienced more permanent job losses or pay and hour cuts are more likely to apply for a continued stay in forbearance. With the number of missed payments accumulating, greater challenges lay ahead for the struggling homeowners to find an affordable post-forbearance resolution.