What happens when mortgage forbearance ends? Is there a huge foreclosure wave coming when forbearance expires? Is mortgage forbearance the catalyst to initiate a housing market crash? In this video, we discuss mortgage delinquency data from Black Knight that shows what happens when people exit forbearance, when the majority of mortgage forbearance plans are set to expire and we also take a look at the top 10 markets with the largest delinquency rates.
Articles I referenced in this video as well as highlights:
»Las Vegas – which also has one of the nation’s highest unemployment rates – is now the hardest hit market, with about 6.3% of borrowers still past due on payments as a result of the pandemic
»California has also seen strong improvements, especially in Sacramento (43% recovered), Riverside (42% recovered) and San Diego (39% recovered)
»While forbearances continue to see widespread declines, based on the current rate of improvement there would still be nearly 2 million active plans at the end of March when the first wave reaches their 12-month expiration point.
»Of the nearly 6.5 million homeowners that have entered forbearance plans since the beginning of the pandemic, only 43% (2.77 million) remain in active forbearance as of mid-November
» 39% of borrowers once in forbearance are now re-performing on their loans, with another 9% having paid off their mortgages in full either through refinance or the sale of their homes
» 7% of borrowers have left forbearance, but remain in active loss mitigation as they work through post-forbearance proceedings; 2% have left forbearance, are not in active loss mitigation, and remain past due on their homes
»Multifamily 2-4 unit properties, most likely hampered by tenants’
ability to make rent payments amid pandemic-related distress,
have an even higher level of delinquencies at 9.06%
Please let me know your thoughts below on the looming foreclosure crisis in 2021: what are your predictions for the housing market 2021 forecast and the housing market 2021 california? After watching this video, do you believe that buying a foreclosure at a discount is even a possibility?
Do you believe a house market crash 2021 or real estate bubble will happen? If so, why? What are your thoughts on the Orange County real estate market and the potential real estate crash for orange county real estate?
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Jeb Smith (huntington beach Realtor/orange county real estate)
Coldwell Banker Realty
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