Mortgage Firms And Homeowners effected by Pandemic

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Ryan Husser
Tucson, AZ · Member since 2018 · 66 posts · 43 votes
5y

Hi Sabrina! 

That is an interesting article and makes me wonder what the market will look like by the end of the year. Demand is insane all across the country, so I am curious if a wave of foreclosures actually helps stabilize supply. Out here in AZ we currently have about 2 weeks of inventory on the market, compared to 2 months of inventory at this time last year. 

Is your market seeing the same demand as we are out west? Most listings are receiving 7-8 offers within a weekend in my market. 

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  • Ryan Husser
    Tucson, AZ · Member since 2018 · 66 posts · 43 votes
    5y

    Hi Sabrina! 

    That is an interesting article and makes me wonder what the market will look like by the end of the year. Demand is insane all across the country, so I am curious if a wave of foreclosures actually helps stabilize supply. Out here in AZ we currently have about 2 weeks of inventory on the market, compared to 2 months of inventory at this time last year. 

    Is your market seeing the same demand as we are out west? Most listings are receiving 7-8 offers within a weekend in my market. 

    1Reply
  • Jonathan BombaciBusiness Member
    Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
    5y

    @Sabrina Sanchez thanks for sharing. I’d welcome some more foreclosure, at least from the greater Boston perspective. Inventory is very scarce and we’d definitely welcome more buying opportunities for our clients in investor friendly areas like Worcester, Lowell, Lawrence, and Leominster. 

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  • Brian J Allen
    Real Estate Agent · Worcester, MA · Member since 2018 · 519 posts · 410 votes
    5y

    Looking at the numbers it will be hard to predict many foreclosures.  Anyone who bought 2 or 3 years ago should have enough equity due to rising prices.  Let's say UP 20% minimum in Worcester, MA.  So they should be able to sell and become whole.  And the average credit score of people originating mortgages is way up as is the amount of down payments.  The people buying this year may be overpaying, but they appear to be in a financial position to do so.

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  • Sabrina Sanchez
    OP
    Real Estate Agent · Worcester Ma · Member since 2019 · 118 posts · 117 votes
    5y
    Originally posted by @Ryan Husser:

    Hi Sabrina! 

    That is an interesting article and makes me wonder what the market will look like by the end of the year. Demand is insane all across the country, so I am curious if a wave of foreclosures actually helps stabilize supply. Out here in AZ we currently have about 2 weeks of inventory on the market, compared to 2 months of inventory at this time last year. 

    Is your market seeing the same demand as we are out west? Most listings are receiving 7-8 offers within a weekend in my market. 

    Hi Ryan,

    We are also seeing a ton of demand and lower inventory which has made the market really competitive. I wish I was seeing 7-8 offers sometimes they are over 20 offers, significantly higher than asking (for the most part) for both single and multi-unit homes. If this were to happen in the future I think it would definitely be a positive thing for buyers but I am not sure if it'll be significant enough to make the market less competitive!

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  • Sabrina Sanchez
    OP
    Real Estate Agent · Worcester Ma · Member since 2019 · 118 posts · 117 votes
    5y
    Originally posted by @Jonathan Bombaci:

    @Sabrina Sanchez thanks for sharing. I’d welcome some more foreclosure, at least from the greater Boston perspective. Inventory is very scarce and we’d definitely welcome more buying opportunities for our clients in investor friendly areas like Worcester, Lowell, Lawrence, and Leominster. 

    Hey Jon!

    Absolutely! I'd be very happy to see some more foreclosures for our determined clients. People are hungry for opportunity! 

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  • Sabrina Sanchez
    OP
    Real Estate Agent · Worcester Ma · Member since 2019 · 118 posts · 117 votes
    5y
    Originally posted by @Brian J Allen:

    Looking at the numbers it will be hard to predict many foreclosures.  Anyone who bought 2 or 3 years ago should have enough equity due to rising prices.  Let's say UP 20% minimum in Worcester, MA.  So they should be able to sell and become whole.  And the average credit score of people originating mortgages is way up as is the amount of down payments.  The people buying this year may be overpaying, but they appear to be in a financial position to do so.

     Hi Brian,

    It's always nice to catch a discussion with you!

    I completely agree with you and to add to that this past year has seen so many changes. It'll be very interesting to see how things turn out. I definitely agree with the Worcester Market. It's incredible how much equity some homes  have gained in the recent years. Worcester itself has a ton of catalysts aiding that. I think if there are owners in this possible future foreclosure group from a city like Worcester it may be  smaller investors that might not have been financially prepared for the pandemic putting them in a tough position if on top of that their tenants were not paying rent - in either case the idea of any possible foreclosures gives me some hope. 

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  • Brian J Allen
    Real Estate Agent · Worcester, MA · Member since 2018 · 519 posts · 410 votes
    5y

    Sabrina,

    The Key would be to identify these folks who are in stress of foreclosure, and help them find a solution.  Typically there are groups that help with foreclosure, but often times their goal is to keep people in their homes.  Sometimes people have made a mistake in becoming owners, sometimes people's situations change and they should not be homeowners.  Homeownership is a wonderful thing, FOR THE RIGHT PEOPLE, and not for all.  There needs to be education about, LETTING THE HOUSE GO, and moving on before you get in too deep.  Perhaps we can reach out to these folks, explain they have equity and help them to sell their houses, before the 18 month saga of foreclosure which not only hurts the owners, but hurts the tenants and the neighbors as well.  How can we find that solution for folk, and simultaneously get these houses into the hands of the people who are best able to maximize value?

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  • Minna Reid
    Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 633 votes
    5y

    Banks are never fast. Once foreclosures resume there will be some immediate foreclosures for sure, but many more much further down the pipeline. Lenders will be looking to do loan workouts which will take some time whether these attempted workouts work or not. Foreclosure is costly for lenders and they will first seek other attempts at resolution with the customer - forbearance, repayment plan, loan mod, short sale, deed in lieu - usually in that order. I anticipate it will take several years to roll through the foreclosures that will come as a result of the dramas of the past year. 

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  • Greg M.
    Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    5y

    We had a ton of foreclosures during the great recession as prices were falling and it was near impossible to get a loan. Today, prices are rising and money is flowing like crazy. It's a simple out for people who want to walk away from a property. Put it up for sale and take the best over ask, full cash offer.

    Of those 2 million people who are in forbearance, I suspect a lot of them did so as a precaution or to allow themselves to save up funds in case of need. 

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