Mortgage Forbearance and foreclosures delayed 2022

sleepy5136 said:
https://www.cnbc.com/2021/04/05/homeowners-in-covid-forbearance-could-get-foreclosure-reprieve.html

There you have it. Anyone thinking there will be a housing crash will be wrong. 2022 will definitely be an interesting year for real estate
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I think most of us knew that there was not going to be any kind of foreclosure tsunami.  There's been so much appreciation in homes in the past year that even those folks who are either in forbearance or foreclosure can sell and walk away with cash in their pocket.
 
USCTrojanCPA said:
sleepy5136 said:
https://www.cnbc.com/2021/04/05/homeowners-in-covid-forbearance-could-get-foreclosure-reprieve.html

There you have it. Anyone thinking there will be a housing crash will be wrong. 2022 will definitely be an interesting year for real estate
Click to expand...

I think most of us knew that there was not going to be any kind of foreclosure tsunami.  There's been so much appreciation in homes in the past year that even those folks who are either in forbearance or foreclosure can sell and walk away with cash in their pocket.
Click to expand...

Do you think a renter can afford to pay a year worth of back rent? I will post more stories of individual landlords getting screwed in the other thread.
As long as you get the commission it?s okay.
 
Foreclosures surge 181% to highest levels since March 2020
Chicago, New York, LA and Houston lead the pack

Some eight months after a nationwide moratorium on foreclosures expired, foreclosure filings soared to the highest level since the pandemic began.

Last month, 33,333 properties across the U.S. faced foreclosure, a 181 percent jump from March 2021 and 29 percent pop from February, according to a report by foreclosure tracker Attom.  The first quarter saw 78,271 properties with a foreclosure filing, a 39 percent from the previous quarter and 132 percent from last year.

Those figures represent the highest number of foreclosures since March 2020 when nearly 47,000 U.S. homes held foreclosure filings, said Rick Sharga, executive vice president of market intelligence for ATTOM.
https://therealdeal.com/2022/04/22/foreclosures-surge-181-to-highest-levels-since-march-2020/
 
Liar Loan said:
Foreclosures surge 181% to highest levels since March 2020
Chicago, New York, LA and Houston lead the pack

Some eight months after a nationwide moratorium on foreclosures expired, foreclosure filings soared to the highest level since the pandemic began.

Last month, 33,333 properties across the U.S. faced foreclosure, a 181 percent jump from March 2021 and 29 percent pop from February, according to a report by foreclosure tracker Attom.  The first quarter saw 78,271 properties with a foreclosure filing, a 39 percent from the previous quarter and 132 percent from last year.

Those figures represent the highest number of foreclosures since March 2020 when nearly 47,000 U.S. homes held foreclosure filings, said Rick Sharga, executive vice president of market intelligence for ATTOM.
https://therealdeal.com/2022/04/22/foreclosures-surge-181-to-highest-levels-since-march-2020/
Click to expand...
181% from March 2020 means nothing. What were the numbers from 2009-2019?
 
Liar Loan said:
Foreclosures surge 181% to highest levels since March 2020
Chicago, New York, LA and Houston lead the pack

Some eight months after a nationwide moratorium on foreclosures expired, foreclosure filings soared to the highest level since the pandemic began.

Last month, 33,333 properties across the U.S. faced foreclosure, a 181 percent jump from March 2021 and 29 percent pop from February, according to a report by foreclosure tracker Attom.  The first quarter saw 78,271 properties with a foreclosure filing, a 39 percent from the previous quarter and 132 percent from last year.

Those figures represent the highest number of foreclosures since March 2020 when nearly 47,000 U.S. homes held foreclosure filings, said Rick Sharga, executive vice president of market intelligence for ATTOM.
https://therealdeal.com/2022/04/22/foreclosures-surge-181-to-highest-levels-since-march-2020/
Click to expand...

Foreclosures since March 2020 doesn't mean much since they were basically non-existent. 

That's like saying my 17-yr old daughter has twice as many speeding tickets in the past 12 months vs the prior 12 months. 
 
Death by a thousand cuts...

Home foreclosures are on the upswing nationwide​

Foreclosures are up 34% from the same time one year ago.

Although foreclosures are on the rise, they remain well below the levels recorded during the 2008 financial crisis.

"Foreclosure starts are nearly back to where they were two years ago when the federal government lifted a pandemic-related moratorium on most foreclosure filings," Barber said. "This rise in foreclosures might also be attributed to pending filings finally processing."

However, the problem may soon get worse, thanks to the resumption of student loan payments.

On top of that, many of the economists believe the resumption of payments could significantly hit the U.S. homeownership rate, and nearly one-quarter expect it would cause an uptick in the delinquency rate.

www.foxbusiness.com

Home foreclosures are on the upswing nationwide

Home foreclosures are on the upswing nationwide, according to a new report, a sign that homeowners are still struggling from the ongoing inflation crisis.
www.foxbusiness.com www.foxbusiness.com
 
I’m pretty confident that student loans wouldn’t be something that causes more foreclosures as banks would check all your liabilities before giving you the loan…
 
Deja vu.

Even if foreclosures get to 2008 levels (which is hard to see for reasons other posts have said), what's going to prevent kick-the-can, free squatting and inside inventory sales/holdbacks we saw back then?
 
sleepy5136 said:
I’m pretty confident that student loans wouldn’t be something that causes more foreclosures as banks would check all your liabilities before giving you the loan…
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student loan is is already considered when they are giving anyone loan, even in pandemic. IIRC if you don't give them the exact monthly amount, they are just going to assume the worst and take off a certain % of your income as student loan payment.
 
Innosint said:
student loan is is already considered when they are giving anyone loan, even in pandemic. IIRC if you don't give them the exact monthly amount, they are just going to assume the worst and take off a certain % of your income as student loan payment.
Click to expand...
Student loans are reported to the credit bureau. I'm sure it's not something an individual has a say on how much they owe.
 
sleepy5136 said:
I’m pretty confident that student loans wouldn’t be something that causes more foreclosures as banks would check all your liabilities before giving you the loan…
Click to expand...
I don't think this really matters. The point is the resumption of student loan payments puts more pressure on household finances which leads to more defaults.
 
Liar Loan said:
I don't think this really matters. The point is the resumption of student loan payments puts more pressure on household finances which leads to more defaults.
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I think it does. Because if payments are that significant, loans would not be created for the individual. If they meet the DTI requirements, the chances of them defaulting will not be that high. Loans aren't being issued as it was back in 2006-2009.
 
sleepy5136 said:
Student loans are reported to the credit bureau. I'm sure it's not something an individual has a say on how much they owe.
Click to expand...
the loan amount is reported, I don't think the monthly payment amount is automatically reported or recorded in the credit system, and banks can't tell what's the monthly payment if none was made in recent years.

Regardless, student loan payment is already factored in the DTI at time of mortgage application. Unless there are some major income changes, the borrower should still be able to meet the monthly payment, granted money will be tighter.
 
Student loan debt calculations in debt to income ratios vary company to company. Sure, there is a standard way to calculate the debt payments - with some lenders even being able to use SLD payment data directly from the servicer. Where the catch lies is "bank overlays" to these standards. Banks can overlay their own guidelines based on perceived risk. Some banks will use repayment overlays as high as 2% ($100,000 / 2% = $2,000 per month payment AYE CARAMBA!!!).

Key to qualifying for your financed purchase is to ask the mortgage loan officer to put in writing what the Underwriter will use to calculate your student loan payments. Accept no substitute.
 
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