As millions of homeowners have fallen behind on their mortgage payments, as the eviction moratorium end upon the start of the new year, many home owners may be at risk of losing their homes.
The Wall Street Journal reported this week that landlords are ready for a “bonanza” of properties from distress sellers as well as a wave of new renters to hit the market.
Just over 7% of all mortgages are currently in a forbearance program allowing owners to delay making their payments because of financial strain. Another one million are behind at least one mortgage payment, but are not in a forbearance program as of Sept 2020.
Investors are preparing for a flood of homes to come onto the market when foreclosure moratoriums expire at the end of the year and home owners are not able to meet the terms of their forbearance agreement which could call all missed payments due or spread the missed payments out over the next 6-12 months as an increase to their current monthly payment. This could put even more stress on an already strained financial situation!