Examine Exhibits Illinoisians Are Delayed On Mortgage Funds | Illinois

(The central square) – A new one study shows that Illinois is the leader in late mortgage delinquency in the Midwest.

Data from the Mortgage Bankers Association shows 5.7% of Illinois homeowners were at least 90 days in arrears with their payments by the end of 2020. Closest were Indiana at 5.1%, Missouri at 4.1%, and Iowa and Wisconsin both under 4%. .

Illinois Policy Senior Research Analyst Bryce Hill said this should come as no surprise as Illinois has been among the hardest hit by the pandemic and state-imposed lockdowns and high property taxes.

“Property taxes mean about seven additional mortgage payments for homeowners in Illinois each year,” Hill said. “That eats up your mortgage capital and makes it harder to make those payments.”

Last year, a study by the Illinois Policy Institute predicted that record-breaking job losses would lead to high mortgage defaults. In the second quarter of 2020, the Illinois loan default rate rose to 8.4%, a level only surpassed by the 2009 housing crisis.

“Mortgage crime has still not returned from pre-recession levels in 2008-2009, so this is an issue that was still artificially high, so to speak, from pre-Great Recession and plaguing the state again,” Hill said.

Before COVID-19, Illinois already had a large number of underwater homes, including the country’s second highest foreclosure rate in February 2020.

The lack of housing means that many homeowners are stuck and desperately clinging to their homes, adding to the low inventory of homes across the state.

Another analysis by QuoteWizard paints a similarly bleak picture. They found that in Illinois, 30.3% of people said they would face foreclosure or eviction in the next two months.

“We have rising housing costs, persistent unemployment and stagnant income, and when you combine those three things, people are really worried they can’t afford a roof over their heads,” said Nick VinZant, senior research analyst at QuoteWizard.

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