18 months of coronavirus carry various foreclosure risks in the US

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The era of the coronavirus has brought about a radical change in the housing market, bringing interest rates to record lows and home prices skyrocketing. a pace not seen since the 1970s and trouble lending to millions of borrowers.

The general condition of mortgage lending has improved as the economy recovers, but almost 2 million plans of abstinence stay. In 2020, most of the service companies had a high percentage of patient borrowers who used it as an insurance policy while staying on top of their loans. Borrowers still in plans have a higher risk of foreclosure.

“You will see a lot of scrambling when people find out they have very high ticket costs,” said Thomas Showalter, founder and CEO of Candor Technology. “It will be a little chaotic and I seriously doubt the average late borrower will prepare because I think most of them thought the late interest payments were forgiven rather than abandoned.”

Opinions differ as to whether tsunami foreclosures on the horizon, or if service personnel only encounter moderate surge… This is an unstable situation that is likely to evolve depending on how the pandemic develops, taking into account the emergence of the delta variant and other factors such as the condition distribute aid to homeowners.

To measure the impact of COVID-19, the Census Bureau created the Household Heart Rate Survey. The latest survey, conducted before July 5, found that 36% of households do not pay rent or mortgage payments. According to Sarah Rutledge, founder and chief economist at SRR Consulting, this stake is likely to be evicted or foreclosed in the next two months.

Ten year capital level According to RealtyTrac executive vice president Rick Sharga, should help protect many borrowers from losing their homes, given that mortgage underwriting standards remain as intact as ever. But not in every city experienced exponential price increases nor Are they all expected to become fast-growing cities? next year. Borrowers with lower financial rates in their ownership and a higher debt-to-income ratio – for example, with FHA loans – you will find yourself in confusion.

“The areas where the pandemic has disrupted employment the most are the most vulnerable to mortgage problems,” Sharga said. “The answer is work, work, work.”

Nationwide, Attom Data Solutions analyzed coronavirus-related issues. Mortgage foreclosure risk in the second quarter of 2021 considering a combination of factors, including the number of houses under water, the number of buyout applications, and the availability in each area. The analysis included 564 counties with a population of at least 100,000 and 50 single-family home and condominium sales during the quarter.

Among the 250 most vulnerable counties, Florida topped the country with 31, followed by 26 in California, 19 in Illinois and Ohio and 17 in New Jersey.

Outside Philadelphia, Delaware County, Pennsylvania is considered the country’s most vulnerable market. At the end of the first quarter, he had 36.4% of houses under water, about 0.05% of mortgaged properties were filed for buyout in the second quarter, and 51.7% of average income is spent on buying a house at an average price here.

Kendall and McHenry counties adjacent to Chicago are next, with shares of 15.2%, 0.07% and 39.3% and 19.3%, 0.06% and 34.1%, respectively. Passaic, NJ, and Butte, California, round out the top five, while the remainder of the top 25 consists of six counties in New Jersey, five in Illinois, two in Florida and Louisiana, and one each in Arizona, Connecticut, Delaware, New York and South Carolina.

“We have about 5,000 abstinence loans in Florida, 2,500 in New Jersey, 650 in Chicago and about 300 in Philadelphia. I think our loan portfolio reflects the industry, ”said Bob Hora, senior vice president of defaults at Cenlar. “These vulnerable areas are definitely a challenge and I expect to see vigorous foreclosures in these areas.”

Consumer Financial Protection Bureau added new rules of alienation and numerous caveats to help needy borrowers keep home ownership. Of course, foreclosure is a last resort in the mortgage community. Service and support services increase their staff to better handle loss reduction plans and avoid repossessing a home after government programs expire.

“When the moratorium ends, service providers may still have to tread a fine line and take their time with foreclosures to ensure they don’t come into conflict with the CFPB. or Federal Housing Finance Agency“Said Joe Panebianco, CEO of AnnieMac Home Mortgage. “One of the possible scenarios is that we may see more action to replace mortgages, rather than full-scale foreclosures. It is a faster, cleaner process for borrowers who are willing to vacate their homes, and it comes with fewer political and regulatory risks. “



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