Is a Foreclosure Crisis Looming?

Here’s why we won’t see a massive influx of foreclosures in the market.

Once the mortgage forbearance period stemming from the CARES Act ends, a lot of buyers are betting on a landslide of foreclosures that will hit the market. Is that going to happen? 

"Homes have appreciated tremendously over the last few years."

The truth is that this massive wave of foreclosures is not coming. We only have 1.8 million homes in forbearance nationwide. There are 320+ million Americans, so it’s not that big of a number. Companies are doing loan modifications, the government is protecting homeowners, and the fact of the matter is that there aren’t going to be millions of homeowners who lose their properties. The numbers just aren’t showing it.

The biggest reason is that homeowners have way too much equity already. Homeowners are sitting on a little piggy bank if they’ve owned property over the last few years. We’ve had clients who bought a home and made $100,000 in appreciation in just one year. Homes have gone up in value tremendously, and there’s a great opportunity for buyers to move up.

If you want to learn more about what’s going on in the market right now or have any questions related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.