The care law for the federal government and various cities and banks offer help. Here̵

7;s what you need to know.


Permanent layoffs are slowing the labor market, which is a bad omen for a broader recovery in the United States as millions of unemployed Americans hold back their mortgages and rents.

More than 6 million households were unable to make rent or mortgage payments in September, according to the Housing Bankers’ Research Institute of Housing America, suggesting that the economic consequences of the coronavirus pandemic are burdening unemployed Americans as Congress stops.

In the third quarter, the percentage of homeowners and landlords who fell behind their payments fell slightly compared to the previous quarter. However, the total amount remains high, experts warn.

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In the summer, the collection of rents and mortgages improved when states resumed business start-ups and more Americans returned to work. However, high unemployment continues to create difficulties for millions of US households.

The unemployment rate fell to 7.9% from 8.4% in August, the Labor Department said earlier this month. Overall, the economy is still recovering from oversized jobs, losing a record 22.1 million in early spring, but the recovery is slowing.

In September, 8.5% of landlords, or 2.82 million households, missed, withheld or reduced payments, while 7.1%, or 3.37 million homeowners, missed their mortgage payments.

Tenants receiving unemployment benefits rose from 3% in early April to 7% at the end of September. Unemployed mortgagees remained unchanged at 3% during this period.

Congress kiosks on the relief of COVID-19

Economists are concerned that millions of US households face the prospect of falling behind in the coming months without another round of much-needed federal aid.

“Given that the current moratorium on evictions expires in January, the situation could become even more difficult for tenants,” said Gary W., a professor of economics at the Maxwell School of Citizenship and Public Affairs at Syracuse University. yourself a place to live and funds to repay missed payments. ”

In September, the Trump administration imposed a national moratorium on evictions until the end of the year. The moratorium, which runs until December 31, extends to people who earn less than $ 99,000 a year and are unable to pay rent or housing.

Republicans and Democrats have been at a dead end for months over a new package of measures to stimulate the coronavirus, sparking sparring over issues such as the amount of money provided for federal unemployment benefits.

Next week, the Republican-controlled Senate is to act on a $ 500 billion aid proposal, an amount rejected by Congressional Democrats as insufficient to fight the pandemic. On Wednesday, Finance Minister Stephen Mnuchin said that the adoption of the next package of assistance on COVID-19 before the election will be “difficult”.

26 million student borrowers missed September payments

Experts warn that millions of student borrowers, meanwhile, are lagging behind in payments, which could have consequences for their credit.

In September, approximately 26 million people missed out on student loans. The share of student borrowers who missed the monthly payment has remained stable since May and is 40%.

Unemployment student debt borrowers rose from 3% in early April to 8% at the end of September. In August, the Trump administration extended the layoffs from March and suspended student loans, suspended fees and waived interest on federal student loans until December 31.

But this does not cover private student loans. Most student loans, or about 92%, belong to the US Department of Education, according to the information firm MeasureOne. Private student loans account for 7.87% of the total outstanding student loans.

“Borrowers who end up in default will see an adverse effect on their credit, which in turn will make it potentially more difficult for them to rent or obtain a mortgage,” Engelhardt added.

Under the CARE Act, passed in March, homeowners who have loans struggling financially through a pandemic can claim leave for up to 180 days, which can be extended for an additional period of another six months if borrowers are still under financial coercion.

Patience allows borrowers to suspend or reduce their mortgage payments, but they will still have to repay the missed payments in the future. But the care of the CARE Act applies only to mortgages supported by the federal government. For those with private or private loans, the options for patience or deferment remain at the discretion of service personnel.

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