Why the 2021 Forecast Doesn’t Call for a Foreclosure Crisis

Why the 2021 Forecast Doesn’t Call for a Foreclosure Crisis | MyKCM

2021 Forecast Doesn’t Call for a Foreclosure Crisis, Let’s take a look to this important information that we are sure give us relief:

As the current forbearance mortgage relief options come to an end, many are wondering if we’ll face a foreclosure crisis next year.

The reality is, plans have been put in place through forbearance to ensure history doesn’t repeat itself.

This year, homeowners are able to request 180 days of mortgage relief through forbearance. Upon expiration of that timeframe, they’re 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 for homeowners to pursue at this point, and with the right planning and communication with the lender, foreclosure doesn’t have to be one of them.

Many homeowners are concerned that they’ll have to pay the deferred payments back in a lump sum payment at the end of forbearance. Thankfully, that’s not the case. Fannie Mae explains:

You don’t have to repay the forbearance amount all at once upon completion of your forbearance plan…Here’s 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’t have to pay the forbearance amount at once unless you are able to do so.”

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.

This means there are fewer and fewer homeowners at risk of foreclosure, and many who initially applied for forbearance didn’t end up needing it.

For those who are still in forbearance and unable to make their payments, foreclosure isn’t the only option left. In their Homeowner Equity Insights ReportCoreLogic indicates:

“In the second quarter of 2020, the average homeowner gained approximately $9,800 in equity during the past year.”

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.

Bottom Line

If you’re currently in forbearance or think you should be because you’re 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.

Get your San Antonio Home Valuation Here

Connect with me on Facebook for updates and information.

[showcaseidx_hotsheet name=”San Antonio – ALL – H”]

One comment

Leave a Reply

Your email address will not be published. Required fields are marked *

© 2021 · ADRIAN GARZA-DELGADO
TREC LIC. NO. 638099

© 2021 ADRIAN GARZA-DELGADO
TREC LIC. NO. 638099

19179 BLANCO RD. SUITE 105-445
SAN ANTONIO TX 78258 USA

19179 BLANCO RD. SUITE 105-445
SAN ANTONIO TX 78258 USA

Phone: 210-446-4455

https://garzaheron.com/wp-content/uploads/2021/12/reallogo.png
https://garzaheron.com/wp-content/uploads/2021/01/equal-e1610435313334.png
https://garzaheron.com/wp-content/uploads/2021/01/realtor-e1610435339407.png