U.S. Stimulus May Merely Delay Coronavirus Foreclosure Wave

Mortgage relief included in the federal stimulus package last month may not be enough to save homeowners facing balloon payments when the forbearance period ends.

The CARES Act allows borrowers whose loans are backed by the federal government to get 180 days of forbearance on mortgage payments, with a possible extension of another six months, due to job loss or other financial hardship caused by the coronavirus outbreak.

The catch is that mortgage borrowers may owe all or a big chunk of the skipped payments when the forbearance period ends. Exactly how much will come due is unclear, housing activists ...