The health crisis we face as a country has led businesses all over the nation to reduce or discontinue their services altogether. This pause in the economy has greatly impacted the workforce and as a result, many people have been laid off or furloughed. Naturally, that would lead many to believe we might see a rush of foreclosures like we saw in 2008. The market today, however, is very different from 2008. There are two reasons we won’t see a rush of foreclosures this fall: forbearance extension options and strong homeowner equity. First, in today’s economy, the CFPB has given homeowners a way to extend their forbearance, which will greatly assist those families who need it at this critical time. Second, equity is also working in favor of today’s homeowners. Today’s homeowners who are in forbearance actually have more equity in their homes than what the market experienced in 2008. The Mortgage Monitor report from Black Knight indicates that of all active forbearances which are past due on their mortgage payment, 77% have at least 20% equity in their homes. Black Knight notes: “The high level of equity provides options for homeowners, policymakers, mortgage investors and servicers in helping to avoid downstream foreclosure activity and default-related losses.” Many think we may see a rush of foreclosures this fall, but the facts just don’t add up in this case. Today’s real estate market is very different from 2008 when we saw many homeowners walk away when they owed more than their homes were worth. This time, equity is stronger and plans are in place to help those affected weather the storm. #homequity #expertanswers #stayinformed #staycurrent #powerfuldecisions #confidentdecisions #realestate #homevalues #homeownership #realestatemarket #realestateexperts #realestatetipsandadvice #keepingcurrentmatters (at Destin, Florida) https://www.instagram.com/p/CDMPnt1hdQh/?igshid=1u1bli7sehdxn
