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I've been saying it for close to a year that once the foreclosure moratorium and mortgage moratorium ends there are going to be foreclosures hitting the market.
Of course real estate is local, so it may not happen everywhere and it won't happen at once. It will be interesting to watch.
....more than 2 million homeowners are behind on their mortgages and risk being forced out of their homes in a matter of weeks, a new Harvard University housing report warns.
Most of the homeowners at risk of foreclosure are either low-income or families of color, said researchers who published the 2021 State of the Nation's Housing report. Congress has dedicated $10 billion to help homeowners get caught up on payments, but it's unclear if that funding will make it to families before mortgage companies begin sending out foreclosure notices, researchers say.
More than 7 million homeowners took advantage of the foreclosure moratorium passed as part of the Coronavirus Aid, Relief and Economic Security Act last spring.... ....As of March 2021, most of those homeowners have started repaying lenders and some are even up to date with their lenders. But that leaves about 2.1 million still behind on their mortgages, researchers said.
Of that number, about 325,000 homeowners have a Federal Housing Administration loan and are behind at least 60 days. They are most likely people of color, the U.S. Department of Housing and Urban Development said Wednesday.
King, 51, a staff member at the Tuscaloosa Housing Authority, fell behind on payments.... She now owes $4,200. ...has only been able to pay her normal monthly mortgage amount—no more.
...she's willing to tack on five payments at the end of her home loan. "I actually would prefer a deferment,"...
Look at the massive numbers of foreclosures that occurred in the period of 2010-2012 and how long it took the banks and lenders to follow through with those. I know of some that weren't done until 2019.
Banks and other lenders aren't set up to deal with this, even now. When/if they do start moving, it will be at a snail's pace. There won't be some massive blast of foreclosures. They're simply not equipped to handle them on a large scale. Banks don't make decisions in a hurry. Never have, never will.
A secondary consideration are the borrowers who got loan modifications and aren't paying those or can't pay them when they come due. The lenders are still getting cash flow out of most of these borrowers, so there's not a lot of motivation to go in and suddenly kick them to the curb. This is not like ten years ago when people were simply abandoning their obligations and walking away.
I've been saying it for close to a year that once the foreclosure moratorium and mortgage moratorium ends there are going to be foreclosures hitting the market.
Of course real estate is local, so it may not happen everywhere and it won't happen at once. It will be interesting to watch.
People go into foreclosure when they can't sell their homes on the open market and clear their mortgages with any profit. We have had some NOD's that went out here before the clampdown and those people just put their homes on the market recently since the moratorium is ending, cleared their mortgage, and made a profit.
I don't see tons of foreclosures hitting the market. That happened before because people were underwater. People are not going to give up equity and let the bank take it.
I have a feeling we'll see some form of mortgage extension or forgiveness paid for by the government.
Big Daddy Biden and company will continue to print their way out of these situations.
Even though they would not be at fault, the Democrats have no appetite for being blamed for a collapse of the housing market or sitting by and watching hundreds of thousands forced out of their homes.
Look at the massive numbers of foreclosures that occurred in the period of 2010-2012 and how long it took the banks and lenders to follow through with those. I know of some that weren't done until 2019.
Banks and other lenders aren't set up to deal with this, even now. When/if they do start moving, it will be at a snail's pace. There won't be some massive blast of foreclosures. They're simply not equipped to handle them on a large scale. Banks don't make decisions in a hurry. Never have, never will.
A secondary consideration are the borrowers who got loan modifications and aren't paying those or can't pay them when they come due. The lenders are still getting cash flow out of most of these borrowers, so there's not a lot of motivation to go in and suddenly kick them to the curb. This is not like ten years ago when people were simply abandoning their obligations and walking away.
I don't see this happening.
RM
We had our mortgage on hold a few months, Bank of America was pretty quick to send us a letter telling us we have to get a repayment plan going and that it will be expected to be paid on top of the mortgage each month. They did not add it to the back of the loan like some people are hoping they'll do.
People that can not pay the mortgage plus the balance on hold will be forced to put their houses for sale.
As I said, I guess we will see what will happen. It will be interesting to watch.
Quote:
Originally Posted by mathjak107
Just what we need ,another discussion on the same old thing , yawn ….
Next to when to take social security this topic has to be discussed ad nauseam already
Why comment if you're not interested?
Same with social security, why do you continue to comment in those threads if they bore you so much?
Quote:
Originally Posted by MikeJaquish
People need to oversimplify to think they look smart....
Thanks for the rude comment Mike. You also didn't have to come in here to comment.
Since you're using your real name, potential clients will see your rude comment.
Quote:
Originally Posted by Lockdev
Probably will not happen.
I have a feeling we'll see some form of mortgage extension or forgiveness paid for by the government.
Big Daddy Biden and company will continue to print their way out of these situations.
Even though they would not be at fault, the Democrats have no appetite for being blamed for a collapse of the housing market or sitting by and watching hundreds of thousands forced out of their homes.
They supposedly gave each state money for homeowners to apply to their state to get that money but most states have been slow to roll out a website for people to apply. NJ had not set their site up the last time I looked.
People that can not pay the mortgage plus the balance on hold will be forced to put their houses for sale.
I think this will probably happen. But that's different than "foreclosures hitting the market."
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