Will there be a wave of foreclosures in our future?
“Where am I going to be able to find foreclosure properties after COVID?” People have been asking us this question quite a bit lately, as they remember back in 2008 when we truly had a real estate bubble and all the foreclosures that resulted from the crash. I don’t think that we’re going to see the same thing this time around, and today I’ll share four reasons why:
1. 50% of people in forbearance are in a good position. Chances are that many of the homes currently in forbearance won’t end up in foreclosure.
2. Banks learned their lesson in 2008. Banks are in the business of lending money and making interest on that money; they’re not in the business of being property managers or Realtors. Banks took on so many homes during the crash that they were still selling some of them in 2014.
3. There’s no political will for foreclosures. Our elected officials stay in power by getting the votes they need; if there’s a flood of foreclosures, that will reflect poorly on them. Some are even taking steps to penalize lenders who aren’t working with homeowners to ensure they can stay in their homes.
4. Homeowners can easily sell their homes. If homeowners do get into trouble with their homes in our current market, chances are they have enough equity in their home to sell it, pay off their mortgage, and still have some left over.
If you’re a homeowner who is concerned about potentially going into foreclosure or you have any questions about foreclosures, please feel free to reach out to me. I’d love to give you some options that may allow you to stay in that home.