Foreclosure Market Skyrocketing 2021???

Question

Just read an article that this may be the calm before the storm on the foreclosure market, with record lows this previous month. do we think this is the time to buy now, with extremely low mortgage rates? Or will it be better to wait until foreclosures begin to rise and REOs become a hot buy again? Or is it still the same way it's always been: that at any time, and in any situation, you can find a good deal and just keep fishing?

Mark H. Porter · Answer

Just my take as I can't predict the future with any certainty - the foreclosures in the primary home market will hit before any noticeable trend in apartment foreclosures.  Why?  Those people getting out of the primary homes will need a place to live.  Even if they grab the class A assets because they're not willing to give up too much that will just put more rental pressure on the class B's and C's.  Also, you won't see the foreclosures in the primary home market for at least 6-12 months as government protections will need to be followed by the foreclosure process.  This guess goes out the window if a vaccine comes in first.

This is VERY different than anything we've seen before.  This is not over-leveraging like in 2008, this is an economic downturn due to a health scare.  The future is anyone's guess.

Jonathan Barr · Answer

there will definitely be an uptick in foreclosures but like @Andrew McGibbon nothing like we saw 10 years ago.   Don't systematic loan issues we had last time around.

Andrew McGibbon · Answer

With 5 million homes in forbearance, I think its too early to tell.  If banks foreclose on these people we could see a lot of REO's in 2021-2022.  However, Im guessing the banks will want to avoid another 2008 and will likely work with these homeowners with or without government interference.  Its up in the air, but I think its unlikely to be what we saw 10 years ago.

Foreclosure Market Skyrocketing 2021???

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