{"id":2325,"date":"2022-01-06T23:31:52","date_gmt":"2022-01-06T23:31:52","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=2325"},"modified":"2022-01-06T23:31:52","modified_gmt":"2022-01-06T23:31:52","slug":"wont-wave-foreclosures-housing-market","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/wont-wave-foreclosures-housing-market\/","title":{"rendered":"There Won\u2019t Be a Wave of Foreclosures in the Housing Market"},"content":{"rendered":"
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There Won\u2019t Be a Wave of Foreclosures in the Housing Market<\/p><\/div>\n

When mortgage forbearance plans were first announced and the pandemic surged through the country in early 2020, many homeowners were allowed to pause their mortgage payments. Some analysts were concerned that once the forbearance program ended, the housing market would experience a wave of foreclosures like what happened after the housing bubble 15 years ago.<\/p>\n

Here\u2019s a look at why that isn\u2019t the case.<\/p>\n

1. There Are Fewer Homeowners in Trouble This Time<\/strong><\/h4>\n

After the last housing crash, over nine million<\/a> households lost their homes to a foreclosure, short sale, or because they gave it back to the bank. Many believed millions of homeowners would face the same fate again this time.<\/p>\n

However, today\u2019s data shows that most homeowners exited their forbearance plan either fully caught up on payments or with a plan from the bank that restructured their loan in a way that allowed them to start making payments again. The latest data<\/a> from the Mortgage Bankers Association<\/em> (MBA) studies how people exited the forbearance program from June 2020 to November 2021.<\/p>\n

Here are those findings:<\/p>\n

38.6% left the program paid in full<\/strong><\/h5>\n