Foreclosures after COVID-19

[Shane Austrie]

I'm interested in hearing everyone's opinion on whether they believe the US foreclosure/REO supply will increase after COVID due to the combination of the careless use of forbearance during COVID + tenants not paying rent + overall unemployment rates?

[Andy Mirza]

I think it will be a while before we see REOs hitting the market in bigger numbers (at least 18 months).

Last time, it took a couple of years before governments and lenders slowed foreclosures to a trickle. They did everything they could to interrupt the normal flow. They're using the same playbook and trying to prevent foreclosures. I think this is a good thing since a I assume that a large amount of borrower are in this predicament through no fault of their own. We should give a helping hand for hardworking people who were paying ontime for years before this pandemic induced downturn.