In this 9 minute video, Lydia Wietsma and I discuss the latest developments in forbearance trends and how the latest proposed stimulus impacts struggling borrowers.
We do these videos to share the information with real estate professionals and struggling borrowers. People have options. There is no need to panic sell.
Total loans in forbearance decreased from 5.46% to 5.37% which is a nice decrease after several weeks of staying relatively flat. It keeps us around 2.7 million borrowers in a forbearance plan.
Forbearance Plans by Stage:
- Initial entries decreased slightly to 17.27%.
- Re-entries increased slightly to 2.28%.
- Extensions increased to 80.45%.
Cumulative forbearance exits from 6/1/2020-1/10/2021:
- 45% of borrowers are current upon plan exit.
- 13.5% of borrowers exited with no loss mitigation plan in place, which is up from 13.2% from the previous week.
Reminder, forbearance needs to be paid back so exit strategies are a must.
New Housing Policies:
President Biden’s proposed $1.9 trillion stimulus plan includes extending the national eviction and foreclosure moratorium through September 30, 2021.
Forbearance is a solution and foreclosure moratoriums are a Band-Aid and do not fix the problem and the goal is to keep homeowners in their homes.
Sarah has been in title & escrow sales since 2004. As an award-winning sales executive and now the Director of Strategic Accounts, Sarah’s role is to bring real estate transactions to Clear 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.