[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$fsgx13av89gsv":3,"$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},4041,"what-you-actually-need-to-know-about-the-number-of-foreclosures-in-todays-housing-market","What You Actually Need To Know About the Number of Foreclosures in Today’s Housing Market","While you may have seen recent stories about the volume of foreclosures today, context is important. During the pandemic, many homeowners were able to pause their mortgage payments using the forbearance program. The goal was to help homeowners financially during the uncertainty created by the health crisis.","","blog","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F05\u002F11125343\u002F20220512-KCM-Share.jpg","While you may have seen recent stories about the volume of foreclosures today, context is important. During the pandemic, many homeowners were able to pause their mortgage payments using the forbearance program. The goal was to help homeowners financially during the uncertainty created by the health crisis.\u003C!--more-->\r\n\r\nWhen the forbearance program began, many experts were concerned it would result in a wave of foreclosures coming to the market, as there was after the \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2022\u002F04\u002F21\u002Fwhy-this-housing-market-is-not-a-bubble-ready-to-pop\u002F\">housing crash\u003C\u002Fa> in 2008. Here’s a look at why the number of foreclosures we’re seeing today is nothing like the last time.\r\n\u003Ch4>\u003Cstrong>1. There Are Fewer Homeowners in Trouble \u003C\u002Fstrong>\u003C\u002Fh4>\r\nToday’s data shows that most homeowners are exiting their forbearance plan either fully caught up on payments or with a plan from the bank that restructured their loan in a way that allowed them to start making payments again. The graph below depicts those \u003Ca href=\"https:\u002F\u002Fwww.mba.org\u002Fnews-and-research\u002Fnewsroom\u002Fnews\u002F2022\u002F04\u002F18\u002Fshare-of-mortgage-loans-in-forbearance-decreases-to-1.05-in-march\">findings\u003C\u002Fa> from the \u003Cem>Mortgage Bankers Association\u003C\u002Fem> (MBA):\r\n\r\n\u003Ca href=\"https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F05\u002F11125344\u002F20220512-MEM-Eng-1.png\">\u003Cimg class=\"aligncenter wp-image-46478\" src=\"https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F05\u002F11125344\u002F20220512-MEM-Eng-1.png\" alt=\"What You Actually Need To Know About the Number of Foreclosures in Today’s Housing Market | Simplifying The Market\" width=\"650\" height=\"488\" \u002F>\u003C\u002Fa>\r\n\r\nThe same MBA report mentioned above estimates there are approximately 525,000 homeowners who remain in forbearance today. Thankfully, those people still have the chance to work out a suitable repayment plan with the servicing company that represents their lender.\r\n\u003Ch4>\u003Cstrong>2. Most Homeowners Have Enough Equity To Sell Their Homes\u003C\u002Fstrong>\u003C\u002Fh4>\r\nFor those who are exiting the forbearance program without a plan in place, many will have enough \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2022\u002F03\u002F21\u002Fthe-average-homeowner-gained-more-than-55k-in-equity-over-the-past-year\u002F\">equity\u003C\u002Fa> to sell their homes instead of facing foreclosures. Due to rapidly \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2022\u002F05\u002F02\u002Ftodays-home-price-appreciation-is-great-news-for-existing-homeowners\u002F\">rising home prices\u003C\u002Fa> over the last two years, the average homeowner has gained record amounts of \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2022\u002F04\u002F08\u002Fdo-you-know-how-much-equity-you-have-in-your-home-infographic\u002F\">equity\u003C\u002Fa> in their home.\r\n\r\nMarina Walsh, CMB, Vice President of Industry Analysis at MBA, \u003Ca href=\"https:\u002F\u002Fwww.mba.org\u002Fnews-and-research\u002Fnewsroom\u002Fnews\u002F2022\u002F05\u002F05\u002Fmortgage-delinquencies-decrease-in-the-first-quarter-of-2022\">says\u003C\u002Fa>:\r\n\u003Cblockquote>\u003Cem>“Given the nation’s limited housing inventory and the variety of home retention and foreclosure alternatives on the table across various loan\r\ntypes, . . . \u003Cstrong>Borrowers have more choices today to either stay in their homes or sell without resorting to a foreclosure.”\u003C\u002Fstrong>\u003C\u002Fem>\u003C\u002Fblockquote>\r\n\u003Ch4>\u003Cstrong>3. There Have Been Fewer Foreclosures over the Last Two Years\u003C\u002Fstrong>\u003C\u002Fh4>\r\nOne of the seldom-reported benefits of the forbearance program was it gave homeowners facing difficulties an extra two years to get their finances in order and work out a plan with their lender. That helped prevent the foreclosures that normally would have come to the market had the new forbearance program not been available.\r\n\r\nEven as people leave the forbearance program, there are still fewer foreclosures happening today than before the pandemic. That means, while there are more \u003Ca href=\"https:\u002F\u002Fwww.newyorkfed.org\u002Fmicroeconomics\u002Fhhdc.html\">foreclosures\u003C\u002Fa> now compared to last year (when foreclosures were paused), the number is still well below what the housing market has seen in a more typical year, like 2017-2019 (\u003Cem>see graph below\u003C\u002Fem>):\r\n\r\n\u003Ca href=\"https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F05\u002F11125346\u002F20220512-MEM-Eng-2.png\">\u003Cimg class=\"aligncenter wp-image-46479\" src=\"https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F05\u002F11125346\u002F20220512-MEM-Eng-2.png\" alt=\"What You Actually Need To Know About the Number of Foreclosures in Today’s Housing Market | Simplifying The Market\" width=\"650\" height=\"488\" \u002F>\u003C\u002Fa>\r\n\u003Ch4>\u003Cstrong>4. The Current Market Can Easily Absorb New Listings \u003C\u002Fstrong>\u003C\u002Fh4>\r\nWhen the foreclosures in 2008 hit the market, they added to the oversupply of houses that were already for sale. It’s exactly the opposite today. The latest \u003Ca href=\"https:\u002F\u002Fwww.nar.realtor\u002Fnewsroom\u002Fexisting-home-sales-slip-2-7-in-march\">\u003Cem>Existing Home Sales Report\u003C\u002Fem>\u003C\u002Fa> from the \u003Cem>National Association of Realtors\u003C\u002Fem> (NAR) reveals:\r\n\u003Cblockquote>\u003Cem>“Total housing inventory at the end of March totaled 950,000 units, up 11.8% from February and down 9.5% from one year ago (1.05 million). \u003Cstrong>Unsold inventory sits at a 2.0-month supply at the present sales pace,\u003C\u002Fstrong> up from 1.7 months in February and down from 2.1 months in March 2021.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\nA balanced market would have approximately a six-month supply of inventory. At 2.0 months, today’s \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2022\u002F05\u002F06\u002F2022-housing-market-forecast-infographic\u002F\">housing market\u003C\u002Fa> is severely understocked. Even if one million homes enter the market, there still won’t be enough inventory to meet the current demand.\r\n\u003Ch3>\u003Cstrong>Bottom Line\u003C\u002Fstrong>\u003C\u002Fh3>\r\nIf you see headlines about the increasing number of foreclosures today, remember context is important. While it’s true the number of foreclosures is higher now than it was last year, foreclosures are still well below pre-pandemic years.\r\n\r\nIf you have questions, let’s connect to talk through the latest market conditions and what they mean for you.","\r\nIf you see headlines about the increasing number of foreclosures today, remember context is important. While it’s true the number of foreclosures is higher now than it was last year, foreclosures are still well below pre-pandemic years.\r\n\r\nIf you have questions, let’s connect to talk through the latest market conditions and what they mean for you.","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F05\u002F11125344\u002F20220512-MEM-Eng-1.png",false,[17],{"id":18,"name":19,"slug":20},7,"Foreclosures","foreclosures","2022-05-12T10:00:14Z","2022-11-16T17:35:09Z",{"id":24,"slug":25,"title":26,"featuredImage":27,"publishedAt":28,"contentType":10,"isVideo":15},4040,"are-there-more-homes-coming-to-the-market","Are There More Homes Coming to the Market?","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2022\u002F05\u002F10163454\u002F20220511-KCM-Share.jpg","2022-05-11T10:00:46Z",{"id":30,"slug":31,"title":32,"featuredImage":33,"publishedAt":34,"contentType":10,"isVideo":15},4042,"should-you-update-your-house-before-selling-ask-a-real-estate-professional-infographic","Should You Update Your House Before Selling? Ask a Real Estate Professional. 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