Reality Check on Foreclosures
There's been a buzz about foreclosure rates across the country recently. People are asking if foreclosures are spiking and what can we do with this current data.
What are the real stats on foreclosures?
Before we examine our current situation, let us first look at what happened in the past 2 years.
2019 was the last normal year the whole world had, which includes the real estate market. According to Rick Sharga, the Executive Vice President of the firm that issued the Q3 2021 U.S. Foreclosure report,
"September 2020 foreclosures were 70% less than September 2019. "
This is due to extended forbearance plans. If we look at the current data that says foreclosures are 68% higher than last year's, this might be shocking until we compare the rates from 2019 and 2020.
If you take a closer examination of the data, foreclosures are still significantly lower than what can be seen in a normal housing market pre-pandemic.
Should you be concerned about the foreclosure rates?
In a statement released recently by Rohit Chopra, the Director of the Consumer Financial Protection Bureau (CFPB), it is said that the government is doing everything it can to make sure that homeowners can still stay in their homes.
They have released a statement to mortgage servicers to continue and reinforce their efforts to assist customers and members affected by the pandemic.
In the Q4 2021 Foreclosure Market Outlook by auction.com, foreclosures' prices are up by 42% caused by a strong demand for more inventory.
It is with hope that through these statements, along with the guidance of your trusted real estate professional, you can debunk any misinformation disseminated and make necessary steps that are applicable to your current situation.
UPDATE ON FORECLOSURES:
Among the homeowners who were in the forbearance program, more than half were able to exit either fully paid or arranged changes in terms. Only 16.8% left the program still in trouble.
However, those who left the program who were still in trouble are given the chance to still negotiate a repayment plan.
The government is giving more opportunities for homeowners to be able to retain their houses as they navigate the market.
If all else fails, the option to sell their home is still a great one especially with the growth of equity the past years.
This will give homeowners to start a new chapter without being heavily burdened financially.
If you have any questions about this matter, or would like to know more about what you can do in today's market, we'd be glad to help out! Call 925-415-0835 today!
Sources:
https://dsnews.com/daily-dose/11-10-2021/foreclosures-tick-up-in-october
https://www.mykcm.com/2021/11/23/dont-believe-everything-you-read-the-truth-many-headlines-overlook/
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