There is no foreclosure crisis looming over our market, and here’s why.
Is there a foreclosure crisis looming? Out in the marketplace and the media, we hear plenty of discussion about forbearance and a potential wave of foreclosures. Today I want to give you all of the facts so you can separate the right from the wrong when people talk about this topic.
The number of mortgages in active forbearance is about 1.8 million. About 83% of people have come out of forbearance since March 2020. The remaining 17% may be foreclosed upon or put on a payment plan.
Of the 1.8 million in forbearance, about 90% have equity in their homes, so they can sell before going into a short sale or foreclosure. That means about 1.5 million people should get out of forbearance, which will keep a foreclosure crisis from happening.
Remember, the media is all about getting you to click, so they may sensationalize things to draw you in. If you’d like to talk about this in more detail or you have any other real estate questions, call us at 512-220-0565. We’d be happy to help.