CHICAGO (WBBM NEWSRADIO) -- Financial pressure has been building for homeowners during this pandemic, and some of them are struggling to keep a roof over their head.
With the pandemic recession, CoreLogic's Loan Performance Insights Report found that serious delinquencies rose on a national level in June, with serious delinquencies up almost 3.5 percent from 1.3-percent in June 2019..
CoreLogic's Chief Economist Dr. Frank Nothaft said that they saw a doubling in the 90-day delinquency rate just over the last three months.
"And of course, that is three months from the onset of the pandemic recession with our data through June, so it's a pretty dramatic increase," he said.
He said the serious delinquency rate will continue to rise of the course of the next year.
"And probably peak at almost four times what it was pre-pandemic. Pre-pandemic in February this year, we had an extraordinary low delinquency rate," Dr. Nothaft said.
Dr. Nothaft said many of those homeowners who are in delinquency have been placed in a forbearance program by their lender.
"And so that's helping them, that's providing them an assist during this really challenging period," he said.
But Nothaft said relief doesn't appear to be near. He said CoreLogic's prediction is that serious delinquency rates could nearly double from their June 2020 level by early 2022. They expect by the end of 2021 that there will be about 2-million homeowners who'll be in serious delinquency status.
