Millions Heading toward Foreclosure

What happens when the foreclosure moratorium ends?

For homeowners who are not in good standing in a forbearance program, servicers may begin or resume the foreclosure process.

Homeowners in a forbearance program have through the end of the program to begin making payments again. Once their program ends, they may also apply for an extension. Further, when they begin to make payments again, homeowners will need to talk to their servicers about their options for repaying the mortgage payments missed during their forbearance period.

But many homeowners will be unable to qualify for forbearance or unable to make payments once their forbearance program expires. In fact, in California alone there are still roughly 1.4 million people out of work compared to pre-pandemic levels, encompassing renters and homeowners. Still others continue to work but have seen their incomes reduced.

firsttuesdayĀ forecasts foreclosures will begin impacting the market in the second half of 2021. These distressed sales will pull down home values and cause homebuyers to pause their plans to purchase. Home sales volume and prices will decline through 2022, bottoming in 2023. Get the full story here.