Hacker News Reader

Comment by ve55 | Hacker News Reader

Although this appears very alarming, it's also worth noting that due to covid it's allowed for them to defer payments for a bit, and that is included in this statistic.

View on HN

It appears alarming because it's spun that way. Look at the actual survey the article references and you'll see 89% of missed first-week payments in June were paid in full with late payments. Basically, some people were late on their rent/mortgage payment last month, still ended up paying it in full, and CNBC wants to convince you that this means the payments missed in the first week of July won't be made at all; July isn't even halfway over and they want you to assume the worst. The article is misleading at best.

>> still ended up paying it in full

with the help of $600 per adult per week from the gov't. what happens when/if the PUA subsidy is not extended beyond July 31?

Yeah, my impression is that there might be some major issues if the 'PUA subsidy' isn't extended, but I'd love to hear from people who know more about this. Anecdotally I've heard that there are a ton of people that won't be able to pay rent, commercial or personal.

And part of the issue seems to be that some of them at least have to pay the rent for missing months too? Again, I don't know much about this so I hope I'm wrong.

So the payments get deferred, but if families aren't earning any money (e.g. lost job or furloughed) for these missed months, how will they catch back up? Where does the extra money come from?

At least with a mortgage, couldn't it be reasonable to extend the entire payment schedule by 1/2/3 months?

Yeah, that's my thinking as well. Maybe congress will pass a nationwide extension on home mortgages for some determined duration of the pandemic? Rent is less clear. Maybe something similar for the landlords and in return there is a moratorium on evictions?

Agreed. This would make the most sense surely.

The government is giving them an extra $2,400 a month. It’s taking some time to get distributed, but it’s going out.

I've had a few people I know put in for deferments simply because they were available. I'm going to be more concerned in 3 months or so when these options are off the table.

I applied for a deferment on my existing mortgage (figured time in the market/savings would be better than paying the bills), but my mortgage broker cautioned that it could affect future refinances and loans since while the missed payments wouldn't affect my score, simply having the forbearance note on my account would be enough to spook a future lender.

We'll find out soon the real numbers, but if you wait for a balloon payment, odds increase of not having the cash (when you have it you may spend it). Still this is a huge percentage, even if it's 10% that's enough to do some damage

Reply on news.ycombinator.com