Search Naples Homes For Sale
Search Homes
General
Anna Eckstein, Realtor®
Our Gurantees
Our Promotions
Buyers
Lely Resort
Naples Reserve
Port Royal
Royal Harbor
Stop Paying Rent
The Isles of Collier Preserve
Valencia Bonita
Verona Walk
Winding Cypress
Featured
About
Blog
Home Estimate
New Construction Directory
Bonita Springs & Estero Ultimate Travel Guide
Naples Ultimate Travel Guide
More
Search Homes
General
Buyers
Featured
About
Blog
Home Estimate
New Construction Directory
Bonita Springs & Estero Ultimate Travel Guide
Naples Ultimate Travel Guide
Log In Sign up
Guest
Guest

Search Homes General Buyers Featured About Blog Home Estimate New Construction Directory Bonita Springs & Estero Ultimate Travel Guide Naples Ultimate Travel Guide My Settings Log In / Sign Up

Why the 2021 Forecast Doesn’t Call for a Foreclosure Crisis

  Back to blog

Thursday, November 5, 2020   /   by Naples Ultimate Selling Team

Why the 2021 Forecast Doesn’t Call for a Foreclosure Crisis

As the current forbearance mortgage relief options come to an end, many are wondering if we’ll face a foreclosure crisis next year. This is understandable, especially for those who remember the housing crisis that began in 2008. The reality is, plans have been put in place through forbearance to ensure history doesn’t repeat itself.


This year, homeowners are able to request 180 days of mortgage relief through forbearance. Upon expiration of that timeframe, they’re also entitled to request 180 additional days, bringing the total to 360 days of deferred payment eligibility. As forbearance expires, homeowners should stay in touch with their lender, because creating a plan for the deferred payments is a critical next step to avoiding foreclosure. There are multiple options for homeowners to pursue at this point, and with the right planning and communication with the lender, foreclosure doesn’t have to be one of them.


Many homeowners are concerned that they’ll have to pay the deferred payments back in a lump sum payment at the end of forbearance. Thankfully, that’s not the case. Fannie Mae explains:


“You don’t have to repay the forbearance amount all at once upon completion of your forbearance plan…Here’s the important thing to remember: If you receive a forbearance plan, you will have options when it comes to repaying the missed amount. You don’t have to pay the forbearance amount at once unless you are able to do so.”


When looking at the percentage of people in forbearance, we can also see that this number has been decreasing steadily throughout the year. Fewer people than initially expected are still in forbearance, so the number of homeowners who will need to work out alternative payment options is declining (See graph below):Why the 2021 Forecast Doesn’t Call for a Foreclosure Crisis | MyKCMThis means there are fewer and fewer homeowners at risk of foreclosure, and many who initially applied for forbearance didn’t end up needing it. Mike Fratantoni, Senior Vice President and Chief Economist at the Mortgage Bankers Association (MBA), explains:


“Nearly two-thirds of borrowers who exited forbearance remained current on their payments, repaid their forborne payments, or moved into a payment deferral plan. All of these borrowers have been able to resume – or continue – their pre-pandemic monthly payments.”


For those who are still in forbearance and unable to make their payments, foreclosure isn’t the only option left. In their Homeowner Equity Insights Report, CoreLogic indicates:


“In the second quarter of 2020, the average homeowner gained approximately $9,800 in equity during the past year.”


Many homeowners have enough equity in their homes today to be able to sell their houses instead of foreclosing. Selling and protecting the overall financial investment may be a very solid option for many homeowners. As Ivy Zelman, Founder of Zelman & Associates, mentioned in a recent podcast:


“The likelihood of us having a foreclosure crisis again is about zero percent.”


Bottom Line


If you’re currently in forbearance or think you should be because you’re concerned about being able to make your mortgage payments, reach out to your lender to discuss your options and next steps. Having a trusted and knowledgeable professional on your side to guide you is essential in this process and might be the driving factor that helps you stay in your home.




Search Naples Homes For Sale
Naples Ultimate Selling Team at MVP Realty
Anna Eckstein
1495 Pine Ridge Rd. Suite 1
Naples, FL 34109
UPE82076DB4AAD4E.pngUP113B2801BD7A45.pngUPE339EBFE79A149.pngUPB9FA725739B842.pngUP0A2FBF8851AF44.pngUP3A2172A5957840.png

Menu

  • Home
  • Search Homes
  • General
  • Buyers
  • Featured
  • About
  • Blog
  • Home Estimate
  • New Construction Directory
  • Bonita Springs & Estero Ultimate Travel Guide
  • Naples Ultimate Travel Guide
Fair Housing/Equal Opportunity
Terms of Use Privacy Notice DMCA
The source of this real property information is the copyrighted and proprietary database compilation of the Southwest Florida MLS organizations Copyright 2023. Southwest Florida MLS organizations. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it. The property information herein is derived from various sources that may include, but not be limited to, county records and the Multiple Listing Service and it may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verification.
2023 Royal Palm Coast REALTOR® Association. All rights reserved. Information has not been verified, is not guaranteed, and is subject to change. The data relating to real estate for sale on this web site comes in part from the Internet Data Exchange (IDX) of the Florida Gulf Coast Multiple Listing Service, Inc. Real estate listings held by brokerage firms other than IDX logo and detailed information about them includes the name of the listing brokers. The information being provided is for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Last Updated: 2/7/2023 1:19 PM CST
The data relating to real estate for sale on this limited electronic display comes in part from the Southwest Florida Multiple Listing Services. Properties listed with brokerage firms other than are marked with the BR Program Icon or the BR House Icon and detailed information about them includes the name of the Listing Brokers. The properties displayed may not be all the properties available through the BR Program. The source of this real property information is the copyrighted and proprietary database compilation of the participating Southwest Florida MLS organizations and is Copyright 2017 Southwest Florida MLS organizations. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it. Some properties that appear for sale on this limited electronic display may no longer be available. For the most current information, contact Data last updated 2/7/2023 1:19 PM CST.
© 2023 My Florida Regional MLS DBA Stellar MLS, Inc.. All rights reserved. The data relating to real estate displayed on this website comes in part from the Internet Data Exchange (IDX) Program of My Florida Regional MLS DBA Stellar MLS, Inc. All listing information is deemed reliable but not guaranteed and should be independently verified through personal inspection by appropriate professionals. Listings displayed on this website may be subject to prior sale or removal from sale; availability of any listing should always be independently verified. Listing information is provided for consumers' personal, non-commercial use, solely to identify potential properties for potential purchase; all other use is strictly prohibited and may violate relevant federal and state law.2/7/2023 1:19 PM CST
The source of this real property information is the copyrighted and proprietary database compilation of the Southwest Florida MLS organizations Copyright 2023. Southwest Florida MLS organizations. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it. The property information herein is derived from various sources that may include, but not be limited to, county records and the Multiple Listing Service and it may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verification.
UP5DB701E1507748.jpg All listings featuring the BMLS logo are provided by BeachesMLS, Inc. This information is not verified for authenticity or accuracy and is not guaranteed. Copyright ©2023 BeachesMLS, Inc.
UP5DB701E1507748.jpg All listings featuring the BMLS logo are provided by BeachesMLS, Inc. This information is not verified for authenticity or accuracy and is not guaranteed. Copyright ©2023 BeachesMLS, Inc.
This site powered by CINC: www.cincpro.com

Accept Terms

To continue searching, you must agree to the Terms of Use.

Opt-In

For the best experience, please provide your cell phone number and select accept below to opt-in to our Terms & Conditions and Privacy Policy to begin receiving text and voice communications.

Share a Link

Create a Note

Select a Notebook


or make a new notebook

Loading


Loading...

Looks like your phone is invalid.

Would you like to update it?

Free Access

Access full property details and exclusive listings.
(Prices and inventory current as of February 7, 2023)

Already have an account?

By providing your number, you are expressly consenting, in writing, to receive telemarketing and other messages, including artificial or prerecorded voices, via automated calls or texts from searchhomesnaplesfl.com at the number you provided above. This consent is not required to purchase any good or service. Message and data rates may apply, frequency varies. Text HELP for help or STOP to cancel. More details in Terms of Use and Privacy Policy.

Free Access

Have you been pre-qualified for a mortgage?

Are you a first time home buyer?

Within how many months do you plan to buy a home?

Do you own a home?


Free Access

What is most important to you during your home search?





Claim Your Home

Verify the value of your home,
maximize your investment and see local market activity.

Almost there!

We just need your phone number to finish creating your account.

Log In

Forgot your password?   No account? Sign Up!