Apparently so. CNBC reported this week:
More borrowers are getting current on their mortgages again, after falling behind on payments due to the economic hardships brought on by the coronavirus pandemic. The improvement, however, is slowing dramatically, which could hit the mortgage market harder in the coming months than previously expected.
As of Jan. 5, just over 5% of all mortgages, or 2.74 million, are still in government or private sector Covid-related mortgage bailouts, according to Black Knight, a mortgage technology and data firm. These plans allow borrowers to delay their monthly payments for up to a year. The payments are then either made up at the end of the loan or when the home is sold.
Real Estate Forbearance
The past week’s tally of borrowers in forbearance marks a decline of 92,000, or 3%, from the previous week. That is the largest drop in over a month, but only because a large volume of plans expired at the end of December. The mortgage bailout is offered in 3-month increments. Borrowers have to reapply every three months.