10 percent of American families at risk of foreclosure, eviction during pandemic

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Millions of Americans are facing a housing crisis.

More than 11 million families are behind on rent and mortgage payments due to financial hardships stemming from the pandemic, a new report from the Consumer Financial Protection Bureau revealed. Evictions and foreclosures are looming, the CFPB urged in its report, putting 10% of American families at risk for losing housing.

The CFPB analyzed the housing market during the COVID-19 crisis and found nearly 2.1 million families are at least three months behind on mortgage payments while 8.8 million Americans are late on paying rent.

What’s more, homeowners are slated to owe nearly $90 billion in missed payments collectively – a historic record since the Great Recession, the last time this staggering number of families were behind on mortgage payments, according to the report. 

“We have very little time to prevent millions of families from losing their homes to eviction and foreclosure,” CFPB Acting Director Dave Uejio said of the findings.

“We are working hard to help homeowners and renters as the U.S. begins to turn a painful crisis, caused by the pandemic, into a robust recovery. We know small landlords are struggling, too, with many dipping into savings or using credit cards to make it through the pandemic. We want everyone — homeowners and renters, landlords, and mortgage servicers — to have the tools they need now to avoid unnecessary evictions and foreclosures,” he added. 

The report also highlighted families who were most at risk of losing their housing, noting that Black and Hispanic families are more than twice as likely to report being late on housing payments compared to their white counterparts. The report noted that 9% of renters said in the report they were more likely to be evicted, with Black and Hispanic households reporting being more likely to be at risk.

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