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US Mortgage Firms Prepare For Mass Defaults As Coronavirus Lockdown Continues

Millions of Americans of all social classes have seen their lives turned upside down by the coronavirus crisis and unable to pay their rents

Mortage firms prepare for mass defaults

Amidst the coronavirus outbreak, millions of Americans of all social classes have seen their lives turned upside down by the crisis. According to reports, Amherst, a real estate analytics and investment firm has claimed that 26 per cent of US renters could possibly need help with their monthly payments on their housing bill. According to the firm, this total could amount to $12 billion per month.

Renters suffer

As per reports, while the $2.2 trillion aid package promised by the federal government will help ease the economic shock of the coronavirus lockdown, the $1,200 check to every American with an additional $500 for every child will not arrive till the second half of April. Reports indicate that 3.3 million Americans have already filed for unemployment during the week of March 21.

Due to the coronavirus lockdown, thousands of small and large businesses have been forced to close their doors. Mortgage companies are bracing for a wave of missed payments on April 1 due to the sheer number of layoffs and furloughs. Some areas that have been badly hit by the coronavirus pandemic have temporarily suspended evictions and social media users have called for a rent freeze in the month of April.

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As per reports, small and large businesses have claimed that they will either pay only half of their usual rents or default. Due to the shutdown businesses’ have come to a complete standstill.

Trump issues guidelines

US President Donald Trump on Tuesday issued a '30-day' set of guidelines in order to control the spread of the deadly Coronavirus in America, which has become the epicentre of the outbreak in terms of both confirmed cases and deaths. Taking to Twitter, he posted a picture with six guidelines and urged people to follow the directions of the state and local authorities. 

Read: Donald Trump Says US Planning To Ban Travel From Brazil Amid COVID-19 Crisis

Read: Trump Finally Issues 30-day Consolidated 'guidelines' For Americans Amid US Covid Horror

(Representative Image)(Image Credit Pixabay)

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