New What happens when Mortgage Forbearance ends?

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The latest delinquency report from Black Knight shows there are still 1.8 Milliion homeowners delinquent on their mortgages, what does this mean for the housing market? Will all of these delinquencies turn into foreclosures flooding the housing market with inventory causing house prices to decline? Which cities are likely to be affected the most when mortgage forbearance ends? Which cities are performing the best with forbearance and least likely to be impacted?

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Articles Referenced in this video:

https://cdn.blackknightinc.com/wp-content/uploads/2021/06/BKI_MM_Apr2021_Report.pdf

What are your thoughts on mortgage forbearance ending? How do you feel like it will impact the overall housing market? Do you think there is a chance the government will extend forbearance again? What are you thoughts on a foreclosure wave or housing market crash? How long do you believe this can go on? Let me know in the comments below.

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24 comments

  1. I'm 60 in fairly decent shape want to sell my house in California and make maybe 250 or 300 prophet, moved to somewhere cheaper and retire. Just 1 problem places are too expensive in Georgia and Tennessee and Alabama where I want to go I don't want to overpay lol. So I said okay I'll rent for a year or two but I have dogs now that way limits my options, so I said fuck it I'm just going to go live by the river and a van with my dogs I'll just fucking be homeless for 2 years

  2. City of Modesto update for houses less than 550 grand. City of 230,000 has 30 of these available, it seems like about eight or nine get put on everyday and only one or two gets sold but the number available doesn't change that much I guess a lot of are pending. I think there's a lot of houses out there that are taking longer to close because their negotiating on the backside due to all the madness in the last 2 months, a lot of people got in over their heads now they're thinking I'll just give up my earnest money. Appraisers in this market don't know what what they're doing right now because it's the Wild Wild West on steroids out there and they're the sheriff for the banks, I get that. But I think they're creating closings that are taking way longer than they need to. Just my two cents

  3. Thank you for this informative video. What does NJ look like? There is very little inventory.

  4. Good points on delinquencies, many who are behind are in a forbearance or in a lender-borrower agreed upon deferment plan.

  5. Is the forbearance moratorium ever going to end? This is the question! We only can make financial decision based on guessing.

  6. Where I live when forebearnce ends if they haven't paid their property tax they will take your home and it will be sold at a tax sale. You might have more time on your mortgage but not your property taxes.

  7. Housing prices are appreciating GLOBALLY – not just in the US. Interest rates are at an all time low across the globe!

  8. If over 90% exited their Forbearances without selling (as shown in the MBA stats), then is it fair to say that anywhere from 80-90 percent of the Forbearance ending on September 30, 2021 will be EXITED gracefully, and the owners will continue making their payments. I really don't see Forbearances moving the needle one way or the other moving forward. The dynamics will continue being Interest Rate, Supply, and Demand… The noise will continue being those who did not buy over the last 3 years waiting for the dip… It can be frustrating for sure…

  9. โ€œFar more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.โ€
    -Peter Lynch

  10. Available jobs numbers came out there are 9 million available jobs, stop the unemployment stimulus and get back to work. Foreclosures wonโ€™t hit the market until next year if at all.

  11. I live in Metro Atlanta and we have been wide-open since May, 2020. They only thing required of us was masks. Employers have been begging people to come to work since May, 2020 when we opened our state. We have the highest number of job openings in Atlanta's history. In May, 2020 restaurants were open, bars were open, hair salons, were open. Schools with the exception of Atlanta were open and had bus drivers taking kids to their respective schools in 08/2020. Many suburb communities offered in school learning in 08/2020 with bus service to get the children to school. We have been wide open and people have MANY JOB OPENINGS to chose from. Why is Atlanta one of the most severe cities for seriously delinquent with a very strong job market?

  12. We are hearing that people leaving forbearance are receiving 40 year mortgages and below market interest rates. Once again, NOT PAYING your bills is rewarding.

  13. it's not the people who're currently in forbearance that'll crash the market, the market probably won't crash for another 1-5 years as it'll be the people who're buying now at the market highs that will crash the market, when eventually interest rates will go up and home prices will come back down…then these people buying right now because "low interest rates" will lose all the equity that they have in their home and most likely be underwater…they will then be 1 sickness/joblessness away from being foreclosed, as the time of forbearance will have passed by then and no more freebies from uncle sam

  14. It has not paid off to be conservative, thoughtful and especially timid over the last year and half. Except of course, in avoiding contracting COVID. Otherwise, the bold and the risk takers have benefited handsomely, along with all those that previously owned properties. Anybody that was talked out of buying a property over the last 18 months is wishing they had never met that person. I don't see an end to this madness if government interventions continue. There is so much more that can still happen: Forbearance could be extended for another year, Prime rates could go negative, interest-only loans could become popular again, 40 year mortgages could become conforming, on and on. Or, I'm missing something and it's all going to break down when inventory rises. I wouldn't bet on that. It hasn't happened for 10 years in a row now.

  15. Mortgage forbearance is once in a lifetime opportunity! Whoever didn't take advantage of it, lost out big time!

  16. Foreclosure is along process! They wonโ€™t come in market until Jan 2022!

  17. great video Jeb!
    I seriously doubt we will have a market crash like 2008, really feel like the govt and banks want to keep people in their homes.

  18. So, basically all those folks who thought theyโ€™d capitalize on folks losing their homes due to forbearance are SOL…lol. I have a buddy who thought heโ€™d be able to buy a $500K home in MD for $300K due to COVID. I told him to stop dreaming and buy now. This was a year ago and now heโ€™s stuck.

  19. I disagree that it is a small number in forbearance. Over one million in default is not a small number. And the housing market is coming down. It already is down! Pending sales, new home and existing homes for sale are down and have been down for months! Buyers, beware, prices are coming down.

  20. Maybe the lenders do want peoples properties since the housing market is so hot right now

  21. Most will not lose their homes. Exactly what I have been debating about the 90 day plus lates. If you are in forbearance and havenโ€™t paid for 6-12 months then you are at plus 90.

  22. I disagree! People are being allowed to stop paying their bills while the gov't is giving away tons of cash. It will eventually end. I got a letter from the IRS informing me that I'll start receiving direct deposits next month because I have a daughter. It's unbelievable. I'm planning to opt out when I receive the link.

    People who choose to not make their mortgage payments and put the money in a savings account are idiots. Unemployment was very generous and not taxed.

    People with credit card debt, live beyond their means. Adding to their mortgage to pay down credit card debt is a temporary fix. These types run the debt right back up but have a higher mortgage balance.

    People also drained their 401k accounts during the no penalty faze of covid. We also have a retirement crises. Too many people who saved nothing depending on the gov't.

    We will see a correction! The question is how far down the road can the govt kick the can. Until then, I'll be working overtime to deal with inflation. I own multiple homes and I have a feeling property taxes are about to see a huge increase due to money printing.