Looks like it is inevitable sometime next year pre-foreclosures will start. Lifestyles has dramatically changed and definitely COVID-19 has taken over the whole world. Many office buildings are losing rent with companies working from home and laying off many workers due to this pandemic. The majority or all big businesses have went to minimum manning to minimize the spread of this deadly disease. This is serious. With loss of revenue for businesses, it is not beneficial to pay rent to include utilities, employees and make a profit. So now with layoff's employees do not have the same income that is sufficient to maintain all bills. Even landlords are affected with little or no help from the government. It's best to try and work something out with the bank prior 90 days behind in your mortgage.
Owners are officially notified by banks letting them know of their current circumstance and actual options after 90 days. They try to work the best they can with homeowner due to current situation. However Congress supplement to homeowners is not enough to maintain their home and credit in good standing. This is detrimental to the economy.
This will be a field day for investors/home buyers and many that has lot's of money saved. There will be an overwhelming availability of commercial property and residential up for another round of short sales. This kicks into a deeper recession. This is where the owner becomes 90 days delinquent and lis pending goes into effect on county records which spiral into pre foreclosure. Then into foreclosure and bank takes over asset. Banks can give cash for keys for you to quietly leave because it cost them more in court to have you served a foreclosure notice by a process server and take you to court. Home is assigned to a brokerage to sell home for a short sale. This means home will be sold for less than it is worth. Once sold the bank will issue a 1099 to the owner for the difference that is taxable and counts as income. Ensure you submit this 1099 to your accountant for the following year taxes. You will eventually receive a document that the loan was satisfied by the bank. Americans need to be educated to a degree by a seasoned realtor with knowledge of short sales and or in depth from an attorney of this process so that they understand their rights. Yes this is depressing and many homeowners and business owners may face this scenario. Believe me, banks do not like this process, nor process servers. If I can be of any help feel free to call me at 407 479-8583.