Pandemic Mortgage Defaults Have Nearly Reached Great Recession Levels

As a result of the financial strains that the pandemic has placed on property owners, defaults on home mortgages across the United States have reached their highest levels since the Great Recession.

Loan financer Fannie Mae recently reported that more than 8% of mortgage holders in some New York City boroughs were late with their monthly payments, and more than 5% were delinquent for 90 days or more.

But while there are federal and state measures in place to prevent—or at least delay—foreclosures, it's not always clear to eligible people how to take advantage of them. And Christie Peale, the CEO and executive director of the Center for New York City Neighborhoods, tells WNYC's David Furst that even these measures are a temporary fix.

"Even with a forbearance, it may be difficult for them to meet their other financial obligations," says Peale.

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