{"id":6002,"date":"2020-11-05T10:01:07","date_gmt":"2020-11-05T14:01:07","guid":{"rendered":"https:\/\/christinapinkerman.com\/wp\/why-the-2021-forecast-doesnt-call-for-a-foreclosure-crisis\/"},"modified":"2020-11-05T10:01:07","modified_gmt":"2020-11-05T14:01:07","slug":"why-the-2021-forecast-doesnt-call-for-a-foreclosure-crisis","status":"publish","type":"post","link":"https:\/\/christinapinkerman.com\/wp\/why-the-2021-forecast-doesnt-call-for-a-foreclosure-crisis\/","title":{"rendered":"Why the 2021 Forecast Doesn\u2019t Call for a Foreclosure Crisis"},"content":{"rendered":"
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\"Why<\/p>\n

As the current forbearance mortgage relief options<\/a> come to an end, many are wondering if we\u2019ll face a foreclosure crisis next year. This is understandable, especially for those who remember the housing crisis that began in 2008. The reality is, plans have been put in place through forbearance to ensure history doesn\u2019t repeat itself.<\/span><\/p>\n

This year, homeowners are able to request 180 days of mortgage relief through forbearance. Upon expiration of that timeframe, they\u2019re also entitled to request 180 additional days, bringing the total to 360 days of deferred payment eligibility. As forbearance expires, homeowners should stay in touch with their lender, because creating a plan for the deferred payments is a critical next step to avoiding foreclosure. There are multiple options<\/a> for homeowners to pursue at this point, and with the right planning and communication with the lender, foreclosure doesn\u2019t have to be one of them.<\/p>\n

Many homeowners are concerned that they\u2019ll have to pay the deferred payments back in a lump sum payment at the end of forbearance. Thankfully, that\u2019s not the case. Fannie Mae <\/em>explains<\/em><\/a>:<\/em><\/p>\n

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\u201cYou don\u2019t have to repay the forbearance amount all at once upon completion of your forbearance plan<\/strong>\u2026Here\u2019s the important thing to remember: If you receive a forbearance plan, you will have options when it comes to repaying the missed amount. You don\u2019t have to pay the forbearance amount at once unless you are able to do so.\u201d<\/em><\/p>\n<\/blockquote>\n

When looking at the percentage of people in forbearance, we can also see that this number has been decreasing steadily throughout the year. Fewer people than initially expected are still in forbearance, so the number of homeowners who will need to work out alternative payment options is declining (See graph below):\"Why<\/a><\/em>This means there are fewer and fewer homeowners at risk of foreclosure, and many who initially applied for forbearance didn\u2019t end up needing it. Mike Fratantoni, Senior Vice President<\/em> and Chief Economist <\/em>at the Mortgage Bankers Association<\/em> (MBA), explains<\/a>:<\/p>\n

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\u201cNearly two-thirds of borrowers who exited forbearance remained current on their payments<\/strong>, repaid their forborne payments, or moved into a payment deferral plan. All of these borrowers have been able to resume \u2013 or continue \u2013 their pre-pandemic monthly payments<\/strong>.\u201d<\/em><\/p>\n<\/blockquote>\n

For those who are still in forbearance and unable to make their payments, foreclosure isn\u2019t the only option left<\/strong>. In their Homeowner Equity Insights Report<\/em><\/a>, CoreLogic<\/em> indicates:<\/p>\n

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\u201cIn the second quarter of 2020, the average homeowner gained approximately $9,800 in equity during the past year<\/strong>.\u201d <\/em><\/p>\n<\/blockquote>\n

Many homeowners have enough equity in their homes today to be able to sell their houses instead of foreclosing. Selling and protecting the overall financial investment may be a very solid option for many homeowners. As Ivy Zelman, Founder <\/em>of Zelman & Associates<\/em>, mentioned in a recent podcast<\/a>:<\/p>\n

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\u201cThe likelihood of us having a foreclosure crisis again is about zero percent.\u201d<\/em><\/strong><\/p>\n<\/blockquote>\n

Bottom Line<\/strong><\/h3>\n

If you\u2019re currently in forbearance or think you should be because you\u2019re concerned about being able to make your mortgage payments, reach out to your lender to discuss your options and next steps. Having a trusted and knowledgeable professional on your side to guide you is essential in this process and might be the driving factor that helps you stay in your home.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As the current forbearance mortgage relief options come to an end, many are wondering if we\u2019ll face a foreclosure crisis next year. This is understandable, especially for those who remember the housing crisis that began in 2008. The reality is, plans have been put in place through forbearance to ensure history doesn\u2019t repeat itself. This […]<\/p>\n","protected":false},"author":1,"featured_media":6003,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"footnotes":""},"categories":[324,5,313,6],"tags":[],"class_list":["post-6002","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-distressed-properties","category-for-sellers","category-foreclosures","category-housing-market-updates"],"_links":{"self":[{"href":"https:\/\/christinapinkerman.com\/wp\/wp-json\/wp\/v2\/posts\/6002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/christinapinkerman.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/christinapinkerman.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/christinapinkerman.com\/wp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/christinapinkerman.com\/wp\/wp-json\/wp\/v2\/comments?post=6002"}],"version-history":[{"count":0,"href":"https:\/\/christinapinkerman.com\/wp\/wp-json\/wp\/v2\/posts\/6002\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/christinapinkerman.com\/wp\/wp-json\/wp\/v2\/media\/6003"}],"wp:attachment":[{"href":"https:\/\/christinapinkerman.com\/wp\/wp-json\/wp\/v2\/media?parent=6002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/christinapinkerman.com\/wp\/wp-json\/wp\/v2\/categories?post=6002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/christinapinkerman.com\/wp\/wp-json\/wp\/v2\/tags?post=6002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}