Even as the nation rebounds from the report warns., more than 2 million homeowners are behind on their mortgages and risk being forced out of their homes in a matter of weeks, a new Harvard University housing
Most of the homeowners at risk of foreclosure are either low-income or families of color, said researchers who published the 2021 State of the Nation’s Housing report. Congress has dedicated $10 billion to help homeowners get caught up on payments, but it’s unclear if that funding will make it to families before mortgage companies begin sending out foreclosure notices, researchers say.
Separately, millions more renters are “on the brink of eviction,” the Harvard researchers found. Census data show that 6 million households are still behind on rent and could face eviction at the end of June, when federal eviction protections expire.
The Center for Disease Control order halting some evictions, and federal liminations on foreclosures for federally-backed housing, both expire on June 30. Housing advocates have pushed for the Biden administration to extend both, but there is no indication an extension will happen.
“With so many renters in financial distress, there are concerns about an impending wave of evictions,” the Harvard report said.
More than 7 million homeowners took advantage of the foreclosure moratorium passed as part of thelast spring. The provision was later extended by the Biden White House. As of March 2021, most of those homeowners have started repaying lenders and some are even up to date with their lenders. But that leaves about 2.1 million still behind on their mortgages, researchers said.