Forbearances saved the housing 2021-2022 market. Many thought such as myself that when the pandemic hit our nation with many job losses and economic uncertainty, I saw many foreclosures and short sales on the horizon. Click here to see more /FORECLOSURE-AND-SHORT-SALE---32819---32836---Dr-Phillips-6-18365.html and /DR-PHILLIPS-FORECLOSURES-BANK-OWNED-REAL-ESTATE---32816---32836---Dr-Phillips-6-18624.html I feared this would mirror the 2005-2008 era wave of foreclosures with a housing bubble.
Forbearances provided much needed relief to nearly five million and saving homeowners. This aided them to get back upon their feet with rising inflation and security of homeownership. Lenders worked with homeowners to stay in their homes from lessons learned in the market crash and tactics in place did not work successfully for millions of homeowners. This time around home loan modifications, payment deferral and combination of workout options. The graph depicts four out of five homeowners in forbearance were paid in full or exiting the plan.
So this means there were alternative options so families can stay in their homes so we as a nation do not repeat the same mistake and homes foreclose and go back to the banks.
Lessons learned was to improve loan approval standards.
In this lesson learned, instead of negative equity, prices increased versus decreased as in 2005 and this helped extremely to keep millions of homeowners in their homes. Many that were current on mortgages reaped the benefits to refinance at extremely low interest rates and take cash out for home improvements or pay off bills. If this did not happen and with inflation, families could not even afford to rent a home as for rental inflation is out of control across the nation. Reach out to your trusted advisor Kevin Strawter for a free appointment at 407 479-8583 to help you make crucial real estate decision to keep you on the proper path for real estate financial decisions.
Click here to know more about Kevin Strawter to help you. /ABOUT-KEVIN-STRAWTER-P-A---MRP--GRI--ABR-6-14330.html