The End of the Foreclosure Moratorium | Monday Minute

With the foreclosure moratoriums implemented back in 2020 due to the Covid-19 pandemic coming to an end, what does this mean for you and the real estate market as a whole?With almost 2 million homeowners in mortgage forbearance, there is a lot of speculation on what will happen.  First off, don’t expect to see a wave of foreclosures hitting the market immediately.  Foreclosures take time and there are procedures banks must go through before they can even take place.  We are going to see a few different things happening.Some banks right now are expecting to transition borrowers out of mortgage suspension and into resuming monthly mortgage payments. I do believe that there may be some borrowers that will be able to transition into this, with banks tagging the missed payments to the end of the current loans, creating a separate payment plan, or in some cases requiring that paid upfront.Other homeowners will be faced with having to sell.  However, since the market values have been steadily increasing over the past couple years, many homeowners may be in a place where they still have equity in their home and will be able to sell the home and even walk away with proceeds from the sale, keeping their credit intact.Even for those that are not in a positive equity position, similar to what we experienced in the early 2000’s, a short sale may be the next best option. Homeowners that jump on this option earlier than later will be able to take advantage of the low inventory levels in the market, making for an easier sale and possibly making money if able to create a bidding war over their home.If you have found yourself in forbearance or pre-foreclosure, there is help.  If you have any questions about your options, give us a call.  We look forward to helping you!