In this 11 minute video, Lydia Wietsma and I discuss the four things you need to know about mortgage forbearance. The bottom line is that borrowers have options but they have to take action NOW as the COVID forbearance options are expiring in 21 business days. Watch the full video for details.
We do these updates to help real estate professionals and consumers understand forbearance, to let struggling borrowers know that although experts are forecasting a tough winter, there are options.
One.
Time is of the essence. There are 21 business days left this year to get into a forbearance plan. The CARES Act programs expire on 12/31/2020.
*Please note that FHFA extended their foreclosure and eviction moratorium to 1/31/2021 after this video was recorded.*
Two.
After 25 weeks without having an increase in loans in forbearance last week was the second week in row with increases. We went from 5.48% to 5.54% of loans are in forbearance which is around 2.8 million borrowers. The biggest reason for the increase is that fewer borrowers are leaving their forbearance programs than in the previous weeks. Other reasons are that re-entries increased slightly and loans in extension increased slightly. Initial entries remained about the same.
Three.
Don’t panic sell. Call someone to guide you through the process that is best for you and your current situation.
Four.
Foreclosures are coming. Not a wave but there will be some. Foreclosures have specific timelines before the property goes to auction and struggling borrowers have options.
Sarah Perkins is an award winning account executive and has been in title sales since 2004. As the Director of Industry Research & Senior Account Executive, Sarah’s role is to bring real estate transactions to Navi Title. Sarah supports her clients by helping them navigate the ever-changing real estate space through thorough research and understanding of current trends impacting today’s home buyers and sellers.