A forbearance tsunami coming

[Michael Quarles]

Think about a couple facts.

1. The most recent reporting period, February 23, 2021, a total of 2.7 million homeowners remain in active forbearance. That represents 5.1% of all mortgages.
2. 
   About 160,000 of these forbearance plans are set to expire at the end of this month.

Now think about this.

What are foreclosures going to look like once the foreclosure moratorium and forbearance programs come to end?

Certainly not all homes are going to go into a stage of foreclosure, however some are, and some are going to NEED to sell prior to reaching this status. 

The majority are 

• Homeowners who have owned for 3 years or longer
• Have a home value of 50,000 or more
• And who have recently fallen below the Sub-Prime borrowing status.
  
• 
  I alway new 30-69-90s were great however this is beyond. 
  

buying strategies are going to change. Fast.