Will Forbearance Develop into Foreclosures in 6 Monthe

[Kenneth Garrett]

COVID-19 has created havoc in the RE sector.  Tenants can’t be evicted and Landlords have to pay there mortgage.  Is there something wrong with this picture.  I acknowledge the fact there are loans/grants to apply for.  Is there enough money to go around.  We have banks shutting down the applications because of the sheer number of applicants.  2 Trillion stimulus package sounds great.  How long will that money last.  I bet not long.  Will that help the small landlord with 3 properties.  The forbearance in most cases is delaying the inevitable.  Most banks are stating the 3 month forbearance will all be due in 90 days.  If you can’t pay what do think the banks will do. Start the Foreclosure process.  Stimulus money to tenants by the government does not insure rents are paid.  The no eviction law is an open door to not pay.

Thoughts on this are appreciated.