[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f2tdcbdi7mqv6e":3,"$fbwk2pqjjqsc7":35},{"item":4,"previous":23,"next":29},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":13,"bodyImage":14,"isInfographic":15,"categories":16,"isVideo":15,"videoThumbnail":9,"videoSource":9,"publishedAt":21,"updatedAt":22},1671,"two-reasons-we-wont-see-a-rush-of-foreclosures-this-fall","Two Reasons We Won’t See a Rush of Foreclosures This Fall","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 \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2020\u002F04\u002F15\u002Fthink-this-is-a-housing-crisis-think-again\u002F\">2008\u003C\u002Fa>.","","blog","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2020\u002F07\u002F21163247\u002F20200722-KCM-Share.jpg","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 \u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002F2020\u002F04\u002F15\u002Fthink-this-is-a-housing-crisis-think-again\u002F\">2008\u003C\u002Fa>.\u003C!--more-->\r\n\r\nThe concern of more foreclosures based on those that are out of work is one that we need to understand fully. There are two reasons we won’t see a rush of foreclosures this fall: forbearance extension options and strong homeowner equity.\r\n\r\n\u003Cstrong>1. Forbearance Extension\u003C\u002Fstrong>\r\n\r\nForbearance, according to the \u003Cem>Consumer Financial Protection Bureau\u003C\u002Fem> (\u003Ca href=\"https:\u002F\u002Fwww.consumerfinance.gov\u002Fask-cfpb\u002Fwhat-is-forbearance-en-289\u002F\">CFPB\u003C\u002Fa>), is \u003Cem>“\u003Cstrong>when your mortgage servicer or lender allows you to temporarily pay your mortgage at a lower payment or pause paying your mortgage.”\u003C\u002Fstrong>\u003C\u002Fem> This\u003Cstrong> \u003C\u002Fstrong>is an option for those who need immediate relief. 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.\r\n\r\nUnder the CARES Act, the CFPB \u003Ca href=\"https:\u002F\u002Fwww.consumerfinance.gov\u002Fcoronavirus\u002Fmortgage-and-housing-assistance\u002Fmortgage-relief\u002F\">notes\u003C\u002Fa>:\r\n\u003Cblockquote>\u003Cstrong> \u003C\u002Fstrong>\u003Cem>“If you experience financial hardship due to the coronavirus pandemic, you have a right to request and obtain a forbearance for up to 180 days. You also have the right to request and obtain an extension for up to another 180 days (for a total of up to 360 days).”\u003C\u002Fem>\u003Cstrong style=\"font-size: 16px;\">\u003Cem> \u003C\u002Fem>\u003C\u002Fstrong>\u003C\u002Fblockquote>\r\n\u003Cstrong>2. Strong Homeowner Equity\u003C\u002Fstrong>\r\n\r\n\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002F2020\u002F06\u002F18\u002Fwant-to-make-a-move-homeowner-equity-is-growing-year-over-year\u002F\">Equity\u003C\u002Fa> is also working in favor of today’s homeowners. This savings is another reason why we won’t see substantial foreclosures in the near future. Today’s homeowners who are in forbearance actually have more equity in their homes than what the market experienced in 2008.\r\n\r\nThe \u003Ca href=\"https:\u002F\u002Fcdn.blackknightinc.com\u002Fwp-content\u002Fuploads\u002F2020\u002F06\u002FBKI_MM_Apr2020_Report.pdf\">Mortgage Monitor\u003C\u002Fa> report from \u003Cem>Black Knight\u003C\u002Fem> indicates that of all active forbearances which are past due on their mortgage payment, \u003Cstrong>\u003Cem>77% have at least 20% equity in their homes\u003C\u002Fem>\u003C\u002Fstrong> \u003Cem>(See graph below):\u003C\u002Fem>\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2020\u002F07\u002F20200722-MEM-ENG.jpg\">\u003Cimg class=\"aligncenter wp-image-42707\" src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2020\u002F07\u002F20200722-MEM-ENG.jpg\" alt=\"Two Reasons We Won’t See a Rush of Foreclosures This Fall | Simplifying The Market\" width=\"650\" height=\"366\" \u002F>\u003C\u002Fa>\u003Cem>Black Knight\u003C\u002Fem> notes:\r\n\u003Cblockquote>\u003Cem>“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.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\n\u003Ch3>\u003Cstrong>Bottom Line\u003C\u002Fstrong>\u003C\u002Fh3>\r\nMany 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.","\r\nMany 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.","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2020\u002F07\u002F20200722-MEM-ENG.jpg",false,[17],{"id":18,"name":19,"slug":20},7,"Foreclosures","foreclosures","2020-07-22T10:00:15Z","2020-07-22T10:00:16Z",{"id":24,"slug":25,"title":26,"featuredImage":27,"publishedAt":28,"contentType":10,"isVideo":15},1670,"a-remarkable-recovery-for-the-housing-market","A Remarkable Recovery for the Housing Market ","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2020\u002F07\u002F20163723\u002F20200721-KCM-Share.jpg","2020-07-21T10:00:35Z",{"id":30,"slug":31,"title":32,"featuredImage":33,"publishedAt":34,"contentType":10,"isVideo":15},1672,"home-sales-hit-a-record-setting-rebound","Home Sales Hit a Record-Setting Rebound","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2020\u002F07\u002F22165315\u002F20200723-KCM-Share.jpg","2020-07-23T10:00:40Z",[36,40,44,48,49,53,57,61,65,69,73,77,81,85,89,93,97,101,105,109,113,117,121,125,129,133,137,141,145,149],{"id":37,"name":38,"slug":39},1,"Uncategorized","uncategorized",{"id":41,"name":42,"slug":43},5,"For Buyers","buyers",{"id":45,"name":46,"slug":47},6,"For Sellers","sellers",{"id":18,"name":19,"slug":20},{"id":50,"name":51,"slug":52},8,"Infographics","infographics",{"id":54,"name":55,"slug":56},9,"Home Prices","home-prices",{"id":58,"name":59,"slug":60},11,"First-Time Buyers","first-time-buyers",{"id":62,"name":63,"slug":64},34,"Senior Market","senior-market",{"id":66,"name":67,"slug":68},35,"Mortgage Rates","mortgage-rates",{"id":70,"name":71,"slug":72},38,"Move-Up","move-up",{"id":74,"name":75,"slug":76},41,"For Sale by Owner","for-sale-by-owner",{"id":78,"name":79,"slug":80},42,"Featured","featured",{"id":82,"name":83,"slug":84},45,"New Construction","new-construction",{"id":86,"name":87,"slug":88},52,"Luxury \u002F Vacation","luxury--vacation",{"id":90,"name":91,"slug":92},53,"Rent vs. Buy","rent-vs-buy",{"id":94,"name":95,"slug":96},80,"Time-sensitive","time-sensitive",{"id":98,"name":99,"slug":100},81,"Outdated","outdated",{"id":102,"name":103,"slug":104},147,"Internal","internal",{"id":106,"name":107,"slug":108},148,"Do Not Autopost","do-not-autopost",{"id":110,"name":111,"slug":112},320,"Inventory","inventory",{"id":114,"name":115,"slug":116},321,"Agent Value","agent-value",{"id":118,"name":119,"slug":120},322,"Affordability","affordability",{"id":122,"name":123,"slug":124},323,"Buying Tips","buying-tips",{"id":126,"name":127,"slug":128},324,"Downsize","downsize",{"id":130,"name":131,"slug":132},325,"Economy","economy",{"id":134,"name":135,"slug":136},326,"Equity","equity",{"id":138,"name":139,"slug":140},327,"Forecasts","forecasts",{"id":142,"name":143,"slug":144},328,"Selling Tips","selling-tips",{"id":146,"name":147,"slug":148},339,"Expired\u002FWithdrawn\u002FCanceled","expiredwithdrawncanceled",{"id":150,"name":151,"slug":152},340,"Price It Right\u002FOverpricing","price-it-rightoverpricing"]