Foreclosures Will Not Effect The Housing Market In 2021 – What's Up Clarksville

Foreclosures Will Not Effect The Housing Market In 2021

People have been asking if there will be more foreclosures next year because of the current crisis?! The research on that question is in, and it shows the number of foreclosures is expected to be much lower than after the last recession.

Why Foreclosures Won’t Crush the Housing Market Next Year | Keeping Current Matters
Why Foreclosures Won’t Crush the Housing Market Next Year | Keeping Current Matters

According to Black Knight Inc., the number of those in active forbearance has been leveling-off over the past month (see graph below):Black Knight Inc. also notes, of the original 4,208,000 families granted forbearance, only 2,588,000 of these homeowners got an extension. Many homeowners have once again started to pay their mortgages, paid off their homes, or never went delinquent on their payments in the first place. They may have applied for forbearance out of precaution, but never fully acted on it (see graph below).

Why Foreclosures Won’t Crush the Housing Market Next Year | Keeping Current Matters

The above numbers may seem large but it is actually 7.5x lower than the number of foreclosures back in 2009 during the housing crash.

Call/text me at 931-237-1417 to discuss this in greater detail.