What’s Mortgage Forbearance?
Over 2 million homeowners are delinquent on their mortgage, and billions in federal aid have yet to be distributed. One of about 1.8 million homeowners is still in forbearance as the safety net is removed. About a fifth of them will not be able to extend their forbearance past September. Among all homeowners, 1.5 million are 90 days or more behind on their mortgage payments but not in foreclosure.
Those who aren’t forced out will still be displaced if selling is their only option, and an estimated 1 in 10 borrowers in forbearance will not have enough equity to sell. While Congress approved $10 billion in federal assistance to help homeowners pay off debt, the program is moving so slowly that protections are expiring before states have figured out how to distribute the money. In the meantime, the White House announced on July 23 that many homeowners with federally backed mortgages might be eligible for a reduction in their monthly mortgage payments.
One of the most frequently asked questions I am receiving lately from home-owners is that “Will the real estate market crash?”, “Should I hold on to my investment and wait until the market cools off?” I think the main reason for these questions is we are basically deprived of essential information and speculations are spreading in this ever-changing environment rapidly. That is why I wanted to share this quick chat I had with my mortgage advisor: Brandy! I suggest listening to this conversation as a podcast when you driving, doing some chores, cooking, going for a walk, or just scrolling through social media!
As always, I am here as your resource and all questions are welcomed.
