Study finds 6.1% of Tennessee residents fall behind on mortgage payments


After a year and a half of the COVID-19 pandemic, many policies put in place to protect landlords and tenants are coming to an end, and this fall could see a wave of foreclosures and evictions as a result.

From the start of the pandemic, policymakers adopted measures to protect tenants and landlords from eviction from their homes. The federal government created funds for rent and mortgage assistance, enacted a moratorium on evictions to protect tenants, and established a foreclosure moratorium and forbearance program for homeowners with secured mortgages. by the federal government. Many states and localities have followed suit with moratoria and housing assistance programs, while many private lenders have offered mortgage forbearance options in accordance with federal policy.

There was strong economic and public health rationale for putting all of these measures in place. Losing a home through eviction or foreclosure can be extremely disruptive to the finances of individual families, and on a large scale, widespread turnover can create catastrophic conditions in the larger real estate market, as the latest recession proved. And with the pandemic raging through much of 2020 and 2021, it was also important to help people stay in place to minimize the potential spread of the coronavirus.

These interventions have produced the desired effects so far, and mortgage default rates are a case in point. The percentage of mortgages that are at least 90 days past due – which essentially means the mortgage holder missed three consecutive payments, generally seen as a sign of severe economic distress – has remained below 1% throughout the year. pandemic thanks in large part to abstention. This is in stark contrast to the Great Recession, when homeowners did not have the same options available and mortgage delinquencies peaked at nearly 9% in 2010.

Now, as these programs come to an end, the economic consequences that policymakers hoped to avoid could materialize. The moratorium on evictions expired on July 31, with forbearance options remaining available until September 30. The moratorium on evictions was also due to end on July 31 but was later extended. With many landlords and tenants in arrears, ending these programs could have major housing spinoffs in the United States this year.

And according to US census data, homeowners in some places may be more vulnerable than others to foreclosure in the coming months. The Household Pulse Survey includes a measure of the number of adults who report being behind on their mortgages. Statewide, New York may be the most at risk, with an average of 8.9% of homeowners reporting being behind on their mortgage payments throughout the pandemic. Other states with high housing costs, such as Hawaii (8.3%), Maryland (8.0%), and New Jersey (7.9%), rank first, as do many states in the United States. South where household incomes are lower and the economic effects of the pandemic may have been felt more strongly.

At the metro level, similar trends hold, with high-cost locations, such as New York, and financially struggling locations, such as Detroit, being the most likely to have homeowners behind on their mortgage payments.

The data used in this analysis comes from the US Census Bureau and the US Bureau of Labor Statistics. To determine which locations fell behind on their mortgages during COVID-19, researchers at Porch calculated the percentage of adults who reported not being up to date on their mortgage payment, averaged over all available weeks of the household pulse survey. As such, the data represents the typical number of people who were behind on their mortgages at any given time during the pandemic, rather than cumulative values. In the event of a tie, the location with the most average number of adults overdue on their mortgages ranked higher.

The analysis found that in Tennessee, 6.1% of adults said they were not up to date on their mortgage payment.

Here is a summary of the data for Tennessee:

– Percentage of adults behind on their mortgages: 6.1%
– Total adults behind on their mortgages: 321,793
– Median monthly owner costs for mortgage holders: $ 1,264
– Peak unemployment in 2020: 15.6%

For reference, here are the statistics for the entire United States:

– Percentage of adults behind on their mortgages: 6.5%
– Total adults behind on their mortgages: 16,297,059
– Median monthly owner costs for mortgage holders: $ 1,609
– Peak unemployment in 2020: 14.8%

For more information, a detailed methodology and full results, you can find the original report on the Porch website:


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