Are we in for a tsunami of foreclosures?

Are we in for a tsunami of foreclosures? Hi, Jenevieve Croall here with JLUX Homes Realty Group.As you may know, because of the hardship of the pandemic, there has been an Eviction And Foreclosure Moratorium On Federally-Backed Mortgages that started back in March of 2020. It looks like that is now being lifted after the current administration’sI latest request for another extension was denied by the supreme court on August 28th.According to reports, Over 2 million homeowners are delinquent on their mortgages. And among them, 1.5 million are 90 days or more behind on their mortgage payments and face the threat of foreclosure. 

As your local real estate expert, I want you to know there are options for anyone facing this hardship. Some of the most common options include:Reinstatement. This, of course, lets you stop the foreclosure by bringing the loan up to date by paying a lump sum on the owed amount. For many, this simply isn’t an option…

Next is a Loan Modification that allows you to alter the loan terms, reducing the monthly payments and giving you more time to pay.Another option is Selling Your Home. For some, selling their house may be the only way to resolve debt accumulated throughout the pandemic. It’s estimated that 9 out of 10 borrowers in forbearance WILL have enough equity to sell. In most cases, you will be able to sell quickly, and probably for more than when you bought the home, given the lack of inventory on the market right now. If you are in the 10% that DOESN’T have enough equity to sell, a Short Sale might be your best option. Our short sale experts can work on your behalf to negotiate with the lender to sell the home for less than what is owed.And remember, in most areas, the demand for homes is still very high. 

Therefore, experts don’t foresee a wave of foreclosures or a market crash ahead. If new indicators arise that would change that prediction, I will be sure to let you know.If you or someone you know is facing a hardship, give me a shout. We will set up a complimentary consultation to go over all the options at hand. We are here to serve you and your referrals. Until next time… Bye.