Is there a tsunami in April?

[Dan Sayre]

A source for the banking sector said that lenders have given a significant number of borrowers forbearance to get through Covid shutdowns.But forbearance is ending. 

And borrowers will need to pay all the back payments over the next 12 months. This is on top of the normal monthly debt payments. This could spell disaster for undercapitalized SFR and small MFH borrowers.

Many simply won't be able to do it, and as a result, a wave of foreclosures is on the horizon. Borrowers will sell for the price of the loan, just to get out and avoid foreclosure. If they can't, future borrowing will be more expensive and more difficult for them.

Wave breaks in April and crests in the fall.Any truth to this or...?

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