Millions of Mortgage, Rent, and Student Loan Payments Missed Due to Covid-19

3.3 Million Homeowners Missed Mortgage Payments in September 2020

According to the National Mortgage News, 12.4% of homeowners missed loan payments during the last 6 months alone.

The report quoted Gary Engelhardt, professor of economics at Syracuse University.  “There is growing concern that absent a slowdown in the number of coronavirus cases and another round of much-needed federal aid, millions of households in the coming months face the prospect of falling further behind.”

11% of Renters Could Not Make Payments

The coronavirus has impacted renters as well.  Missed rent payments totaled $9.2 billion in the third quarter of 2020, according to the MBA’s housing report. In the second and third quarters, 11% of renters missed one payment, 4% missed two, 2.8% missed three and 3.8% missed four or more.

16.2% Defaulted On Their Student Loan Payments

Missed student loan payments totaled $29.5 billion.  Approximately 16.2% of student loan borrowers missed one payment since April, 8.8% missed two, 7% missed three and 22.7% missed four or more.

Defaults in Student Loans and Rent Affect Mortgages

Borrowers who default in their rent or student loans see the negative effects on their credit reports, which results in future difficulties in renting or qualifying for a mortgage.