Distressed Homeowners Post Covid

[Brett Goldsmith]

My thoughts are that there will be a new wave of foreclosures and an increase in short sales after the dust settles. (Not as large as the financial crash ). Right now people will be given forbearance plans from their mortgage servicers and foreclosures are halted temporarily through April by the Federal Government while everyone is social distancing and hiding in their homes. We may even see some sort of new programs come out ( Maybe a return of a HAMP type program or the hardest hit fund? ). While these are helpful to some people to others they are not.

Forbearance plans are band aids that delay the inevitable for many. Most borrowers who miss one payment never catch up. If someone remains unemployed or takes a pay cut post forbearance plan they will not be able to afford a repayment plan or qualify for a loan modification.