Foreclosure Crisis 2021 NOT !

[Jay Hinrichs]

Recent report by corelogic indicates no crisis in the offing. and defaults are down since June.

So those sitting and waiting for this massive foreclosure correction might not see that.

What I personally think is for sure there is pent up foreclosures that would happen in a normal cycle in any normal year.

those got delayed a year so there will be more foreclosures through the pipeline once those start to hit than in a normal year but its

just foreclosure pipeline catch up.

Thoughts for those of you that play in the foreclosure sandbox ?

[Chad U.]

Originally posted by @Jay Hinrichs:

Originally posted by @Chad U.:

I think it may be more local, or state by state.  The states that had put an all out ban on FCs will likely see more than others as they catch up in their backlog.   For the GSE  loans on forbearance, most of these borrower's terms will be restructured or at least offered, which will inevitably kick the can down the road for those who truly cannot or will not resume payments.  Therefore will likely spread these FCs out over several years, so a major influx is not likely to happen.  

Had dinner with one of my clients here in Birmingham last night.. his take on it was those that are not sophisticated will have problems they will forget to file their paper work wont do it right and have other issues and so those will add to the normal non pay for other reasons. 

so this could very well cause a run on the lower socio economic scale borrower.. the ones the govmit tries to help the most.. that was his take on it.  so here comes the C and D class assets was his thoughts 

 Yes, I concur. The lower social class or less sophisticated will likely take it on the chin, as many will take the Ostrich approach and stick their head in the sand, hoping the problem will just go away.