The pandemic that started in 2020 brought more than the crisis from a rampant, and deadly virus. It also brought non-essential jobs to a halt. This created a vacuum where homeowners, renters, etc. are unable to pay due to not having any income.
The Center for Disease Control in 2020 had ordered halting some evictions, and federal liminations on foreclosures for federally-backed housing that have lasted over a year. However, now all that is set to expire on June 30, 2021. Currently, housing advocates have pushed for the Biden administration to extend both, but there is no indication an extension will happen as of the writing of this article.
Last year, more than 7 million homeowners took advantage of the foreclosure moratorium passed as part of the Coronavirus Aid, Relief and Economic Security Act last spring. The provision was later extended by the Biden Administration – and as of March 2021, most of those homeowners have started repaying lenders and some are even up to date with their lenders.
But according so several researches, that leaves about 2.1 million still behind on their mortgages – and there’s a big chance that they may not make it. As per research, most of these are roughly people of color from the middle-class, and down.
“Accumulating the savings needed for down payment and closing costs is difficult for most first-time buyers, but especially for renter households of color,” according to the report, which was funded by Wells Fargo, Habitat for Humanity, the National Association of Realtors and the National Association of Home Builders.
Pumping more money into the home down payment assistance programs that state and local governments offer and targeting those dollars to people of color would help shrink the gap, the report recommended.