Hey! Edna Wilson here your Hometown Realtor as Hometown as Apple Pie, with this week’s Education Corner. Today We’re talking about Foreclosure, Foreclosure, Foreclosure, For Sale, Foreclosure.
The sky is falling , everyone’s getting foreclosure, well, let’s look at the facts because the facts are what keep us balanced correct? Right now we have 7.1 million people who actually filed for forbearance, that was back in April, right? So we’re coming up to the end of the 18 month forbearance span, so things have to change, right? They either have to be caught up with their payments or they have to go into some type of repayment. Now the government is making it very hard on banks to just foreclose on people, they’re not allowing that, and I don’t see that happening any time soon because everyone’s still kind of gun-shy from the collapse of 2008, correct? So banks don’t want to make that mistake again so the banks don’t want your house honestly so what we know is that 160,000 of those homeowners have already exited the program just because they were high risk, they weren’t really going to do the forbearance stuff anyhow. That’s a very small percentage of the 7.1 million, right? They’re just like “we’re out”. So out of that , that just leaves just shy of seven million people, which most of them have already caught up.
More than 50% of them have already caught up their back payments, or they’re in a very strict repayment plan and actively doing that. So that brings us down to like 3.5 million that are still in forbearance that are still working through it, and out of that, most of them have a tremendous amount of equity in their home, so they’re not leaving them, they’re not just abandoning their home like they did in 2008, there just wasn’t enough equity, so they had to walk away. This time they had equity to sell, so all the predictions are for the national board of realtors that there is not going to be a foreclosure pandemic exit thing again. It’s going to be taken care of and we’re not going to see that big foreclosure spread across the nation which is actually very healthy for the market, we don’t want that. All right, hope that explains a little bit more about foreclosures, I’m Edna Wilson, your hometown Realtor, as Hometown as Apple Pie.