top of page

Could a new stimulus help Americans stay in their homes?

Writer's picture: Payton Legal GroupPayton Legal Group

For the fourth straight month, nearly one in three Americans missed their housing payments – but the situation could be at least temporarily alleviated through another stimulus package, according to a new study from Apartment List.


As eviction bans expire across the country, 32% of homeowners and renters failed to make their full housing payments on time, according to the study. More than 20% owed more than $1,000.


“In the first week of August, 11 percent of survey respondents made a partial payment of their monthly rent or mortgage bill, while an additional 22 percent have yet to make any payment whatsoever,” study authors Igor Popov, Chris Salviati and Rob Warnock wrote.


“This continues a trend that has now lasted four months; the combined rate of missed and partial first-week payments has ranged from 30 to 33 percent going back to May.”

Each month so far, Apartment List found that many missed mortgage and rent payments were made whole with late payments by the end of the month.


“Nevertheless, by the first week of August, 10 percent of respondents had still failed to make a full payment for July,” the authors wrote. “As a result, unpaid housing costs are piling up for many Americans, renters and homeowners alike.”


The study found that 65% of homeowners with unpaid housing bills worried about facing foreclosure within the next six months, while 66% of renters in the same boat feared facing eviction within that time frame.


“With the recent expiration of most federal eviction and foreclosure protections and a lapse in expanded unemployment benefits, this insecurity is sure to deepen over the coming weeks,” the authors wrote.


At the beginning of August, 8% of homeowners had accumulated missed housing payments of under $1,000, while 11% owed between $1,000 and $2,000 and 13% owed more than $2,000, the study found. Meanwhile, 15% of renters owed their landlords less than $1,000, 11% owed between $1,000 and $2,000, and 5% owed more than $2,000.


“These accumulating missed payments affect renters and homeowners very differently,” the study said. “Some owners can defer payments through forbearance plans or even tack payments missed due to financial hardship onto the end of their loan period. Renters lack these options and the clarity that accompanies them.”


Could stimulus solve the problem?


“As congress continues to debate another round of stimulus, these data serve as an important indicator of the amount of assistance required to get Americans caught up on their housing payments (and potentially save thousands of families from losing their homes),” the study authors wrote.


According to the study, a stimulus check of $2,000 would be sufficient to meet the unpaid rent bills of 83% of renters who are currently behind on their payments. An additional $1,200 payment would alleviate half the nation’s outstanding housing debt.


“That said, a one-time payment does little to alleviate the underlying economic crisis causing this problem, so it is likely that housing debt would again accrue as widespread unemployment continues,” the study said.

1 view0 comments

Comments


  • Facebook
  • Twitter
  • YouTube
  • Pinterest
  • Tumblr Social Icon
  • Instagram

© 2023 Payton Law Group

Attorney Advertising. This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. We are a debt relief agency. We help people file for relief under the bankruptcy code.  Attorney Rusty Payton and Payton Legal Group LLC are responsible for the content of this site.  Attorney Rusty Payton is licensed to practice law by the Supreme Court of Illinois and by the United States District Court for the Northern District of Illinois and the United States Bankruptcy Court for the Northern District of Illinois. The Supreme Court of Illinois does not recognize certifications of specialties in the practice of law. Certification is not a requirement to practice law in Illinois. 

Attorney Rusty A. Payton has practiced in Chicago for the last thirty years. He is an honors graduate of the Ohio State University and the Ohio State College of Law. His practice areas are centered around helping people and businesses with some of the most important aspects of their financial lives. Buying a home, signing a lease, getting a security deposit back, forming a new business, filing bankruptcy, negotiating debt relief, dealing with foreclosure or working with a mortgage lender to modify a loan or perform a short sale - these are all common aspects of the firm's practice.

Mr. Payton's overriding concern is to always match his clients' goals with the best and most practical legal solution.  He does this by listening, communicating and employing legal strategies and remedies that suit the particular client situation. He understands that every client brings a unique set of facts and circumstances to the table.  His work on behalf of all clients is just as personal.  At our firm, clients are treated with the utmost respect, and their legal needs are met with exceptional attention to detail, understanding and professionalism.

bottom of page