Photo by Zachary West
As millions of homes in Florida are battered by the force of Hurricane Irma, assessments for the damage caused by Harvey are ongoing in Texas.
An assessment by Black Knight Financial warns that 300,000 of the 1.18 million homes with mortgages in the FEMA-designated disaster areas related to Harvey could become delinquent over the next few months.
“Post-Katrina, delinquencies spiked in Louisiana and Mississippi disaster areas, jumping 25% to peak at 34% of all mortgaged properties being past due,” explained Black Knight Data & Analytics Executive Vice President Ben Graboske.
Following Katrina, there were 456,000 properties in the FEMA-designated disaster areas, less than half the total in areas hit by Harvey, with $46 billion in unpaid mortgage balances. First Knight forecasts $179 billion post-Harvey.
This will be a long-term recovery. If the Harvey-related disaster areas follow the same trajectory as those hit by Katrina, within four months we could be looking at as many as 160,000 borrowers falling 90 or more days past due on their mortgages,” added Graboske.
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