If you are looking for a great place to sit and enjoy a nice cup of coffee or tea, I have three of my favorite shops. Here are the 3 top coffee spots in the heart of Eugene. First, we will take a
Will We See A Foreclosure Boom In 2021?
Dated: March 5 2021
Are We Going To See A Foreclosure Boom In 2021?
Let's chat about Foreclosure; the question everyone is asking, "What are foreclosures going to look like once the foreclosure moratorium and forbearance programs come to an end? And will we see all those borrowers in forbearance end up in default?"
Right, not there are about 2.7 million homes currently under the protection of the federal mortgage forbearance and foreclosure moratorium programs. That will be expiring later this year. With that being said things are changing daily. Make sure you subscribe to my channel to stay up to date on the local for Lane County, Oregon 97401, 97477, 97426, and the national real estate market.
The CARES Act forbearance program has done what it was supposed to do. Allowing millions of people to get through the pandemic and recession without losing their homes while giving them time to get back on their feet financially once COVID-19 is under control. But there are still millions of borrowers in the forbearance program. What will happen to them as they exit, and how will the industry handle the high volume of borrower requests for repayment plans? Homeowners who left the program without a repayment plan of some sort in place are the ones who are probably most at risk of going into default. With very low inventory and mortgage interest rates with home shoppers and investors looking for deals, there is more demand than ever! We will see Foreclosures hit us differently than seen before. There are roughly 3 scenarios at play here for the homeowners that are delinquent on their mortgages. One, jobs begin opening back up, and they go back to work, which most homeowners will start to make their payments once again. Almost 30% of homeowners in forbearance are current on their mortgage payments. The ones that still need assistance staying on top of their mortgage payment will need to refinance or do a loan modification that is number 2.
Banks do not want a repeat of 2008-2012 when many foreclosures entered the market. This makes banks more likely to negotiate with borrowers and keep homeowners in their homes. The last scenario will be to sell their home if the homeowner is still unemployed when the forbearance ends. They most likely will not be able to afford their mortgage. On the plus side, the housing market is strong. The homeowners who foresee this situation typically have enough equity to walk away safely and possibly cash in their pockets. According to RealtyTrac's parent company ATTOM Data, about 70% of homeowners have more than 20% equity. Other published research has indicated that more than 90% of borrowers in forbearance have more than 10% equity in their properties.
There's also likely to be some short-term disruption in the apartment or multifamily due to the eviction bans put in place by the federal, state, and local governments. Landlords who are unable to collect rent right now since their tenants are out of work—a toxic combination, which will probably lead to some distressed rental properties hitting the market.
According to economists and market watchers, home values are growing at their fastest pace in a generation, and are showing no signs of slowing down in 2021 and most likely won't see the big crash everyone was expecting. What are your predictions?
As a licensed realtor under Hearthstone Real Estate and serving Lane County, Genevieve Partsch stands out strongly for her intense passion and a strong commitment to ensuring that real estate buyers a....
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