Why a Wave of Foreclosures Is Not on the Way

Why a Wave of Foreclosures Is Not on the Way

With forbearance plans coming to an end, many are concerned the housing market will experience another wave of foreclosures. While this has happened before in 2000 and 2007-08 it is important not to forget that we have come out stronger on both occasions with greater control over our lives as homeowners than ever before!
In order for a similar situation arise today my predictions state: 1) The economy must once again suffer 2). Interest rates continue rising 3); More people move back into renting 4). Wages remain stagnant 5 )Lenders turn away qualified buyers.

There are fewer homeowners in trouble this time

The housing industry is recovering from the last crash, and people are still getting their homes back. While 9 million households lost theirs in foreclosure or because they owed too much money that wasn't enough for it anymore--but not this time around! Only 8.5% of mortgage holders entered forbearance programs which means there's plenty more places where you can find your dream home if things get tough again soon enough.

As of last Friday, the total number of mortgages still in forbearance stood at  1,221,000. That’s far fewer than the 9.3 million households that lost their homes just over a decade ago.

Most of the mortgages in forbearance

have enough equity to sell their homes

There are 1.22 million homeowners in forbearance right now, and 93% of them (or about 930 thousand) have at least 10% equity in their homes! This means they could sell if needed to pay off any related expenses instead of having a hit on credit from foreclosure or short sale which would also lower scores over time due the amount owed after buying back whatever was lost during this type situation .

  • 2017: 314,220
  • 2018: 279,040
  • 2019: 277,520

The number of foreclosures coming out the forbearance program is nowhere near what it was 15 years ago, and only one-third as many in any given year since. This gives hope that we can avoid another housing crisis like this before 2020!

The current market can absorb listings

coming to the market

The housing market is different now than it was back in 2008, and there are many reasons why. For starters the number of homes for sale has declined significantly while demand continues to grow which means that prices will likely continue increasing at least until all available properties come onto the market again - but even more importantly nowadays you can't find any foreclosures on offer!

Bottom Line

The data indicates why Ivy Zelman, founder of the major housing market analytical firm Zelman and Associates, was on point when she stated:

“The likelihood of us having a foreclosure crisis again is about zero percent.”

Post a Comment