AZ Forbearance Update (Video)

Lydia Wietsma with Nexthome Elite Realty and I spent 15 minutes talking about mortgage forbearance, different options, what to plan for in the coming weeks and months.

Today’s Takeaways:

The goal of the banks today is different than it was 10 years ago. 10 years ago it was about enabling homeowners to complete short sales. Today it is about keeping struggling homeowners in their homes.

Total loans in forbearance have dropped for 15 straight weeks. It is now only 6.93% of all loans, which is about 3.5 million loans.

If 25% are current means that 875,000 are current of the 3.5M in forbearance. Just over 2.6 million are delinquent. About 1 million loans, or 21%, have left forbearance status since the peak in May.

Foreclosure filings are down 81% year over year. Filings are down because the courts are not moving forward with foreclosures in forbearance. Many courts across the country remain closed due to the pandemic. Foreclosure filings and processes are different across the country.

Delinquencies are still tracked but not turning into foreclosures due to forbearance protections making true numbers very difficult to track.

We do know that 30-day delinquencies are down while 60 and 90 day delinquencies are up. There are about 1.8 million more 90 day delinquencies now than there were in February.

In 2017, right after Hurricane Irma hit, there were the same number of delinquencies as today. There was not a housing crash in 2017.

Remember in 2008-2010 there were 8.8 million foreclosures nationwide. We are not on track to come close to this number based on what we are seeing now.

Published by Sarah Perkins

Sarah has been with Lawyers Title of Arizona since 2004. As an award-winning sales executive, Sarah's role is to bring transactions to Lawyers Title. To do this, she focuses on supporting her clients and helping them navigate the ever-changing real estate space through thorough research and understanding of current trends impacting today's home buyers and sellers.

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