Forbearance, Foreclosure and Eviction Timeline - Expert Needed

[Ryan Vertucci]

The Federal Forbearance, eviction, and foreclosure moratorium programs are ending on 7/31/2021. Currently there are 2.2 million homes in Active Mortgage Forbearance. The CFPB recently put in the following rules for foreclosures to commence which will extend the process.

CFPB Issues Rules to Facilitate Smooth Transition as Federal Foreclosure Protections Expire | Consumer Financial Protection Bureau (consumerfinance.gov)

Most of these 2.2 million homes in forbearance at this time have equity and many will end up hitting the market rather than making it to active foreclosure or short sale. The question is when will we start to see these hit the market?  How many of them will end up on the market? (most are predicting around 1.5 to 1.8 million)

The homes that were already delinquent 6 months prior to March 2020 and "abandoned" will hit first. The rest it seems will more than likely be scattered? Foreclosures typically take 6 to 18 months to process to the point of a bank taking possession, with the new rules will this be longer? If so how much longer?

I would think it would be in the best interest of the borrowers in forbearance to start placing these homes for sale ASAP with the market in its current state. Could there be a spike of these once this ends and these lenders receive the letters from banks stating the process is starting? When should we begin seeing the impact of this supply on the market?