When the US economy entered into a COVID19-induced recession, millions of Americans have either lost their jobs or have had their wages reduced. Thus, people are forced to hold on to their savings for household expenses.
Millions have stopped paying their mortgages to prioritize money for survival given the uncertainty brought about by the health-turned-economic crisis. The government has passed the CARES Act to provide homeowners a risk-free temporary relief from their mortgages.
What happens when forbearance moratoria ends?
Previously, housing experts were worried that delinquency rates would skyrocket and foreclosures would come in waves. However, with the latest trend in the housing market, experts expect that the end of forbearance will not cause much damage to the housing industry.
Though some homeowners may feel the pain of forced sales as they exit from the forbearance, the high demand for home sales has caused the prices to rise sharply. This may halt the what-would-have-been wave of foreclosures.
What does this mean to homeowners?
Homeowners who may find themselves unable to pay their mortgages when their forbearance ends, may resort to selling their house for a profit, rather than going into foreclosure.
Ralph DeFranco, global chief economist at mortgage insurance company Arch Capital Services shares that if homeowners have equity, they can always sell the house and pay off the mortgage.
Though not a great outcome, it is not as terrible as when the bank takes their house and sells it.
For homeowners who would like to keep their homes after the end of forbearance, Analytics Before Foreclosure helps people restructure your loan that will work better for you, or come up with favorable options in avoiding foreclosure.
Visit www.analyticsbeforeforeclosure.us for more information or drop a message at the Facebook page – @analyticsbeforeforeclosure.
Know your options, because it does not cost anything to ask
but may be worse if you don’t.
