Skipping Mortgage Payments Isn’t for Everyone
Forbearance should be used by borrowers in trouble, not by those who can pay.
Maybe it’s not a good idea to skip that mortgage payment.
Photographer: Matthew Busch/Bloomberg
Almost 6% of mortgage loans are in forbearance, meaning about 3 million homeowners have delayed payments, according to data released this week by the mortgage bankers' trade group. That's a 60% jump from the prior week, and industry observers estimate that the number of loans in forbearance could eventually climb to as high as 15%.
So who's postponing their mortgage payments? Congress’s relief legislation, the CARES Act, just says that borrowers can suspend payments for up to a year without penalty if they've experienced a financial hardship related to Covid-19 -- but they don't have to actually provide any verification to qualify.