Bay Area Escaped Mortgage Crash Despite Pandemic

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RONERT PARK, California (KGO) – Good news in the rear. Fears of mass evictions and foreclosures have grown almost as fast as the virus, but those fears have eased despite widespread complaints about living in the Bay Area.

The high cost of housing is one of the biggest complaints from Bay Area residents.

The median price of a home sold in July exceeded $ 1.3 million.

Ironically, these high house prices may be a key reason for the decline in foreclosure requests.

Rick Sharga of Realty Trac says 70 percent of California homeowners have at least 20 percent equity.

This means that many who have outstanding mortgages can take advantage of this share by selling their home and paying off their mortgage.

“There is a ready market for homeowners who unfortunately have to sell their homes. They will most likely leave with money in their pockets, ”he said.

Realty Trac found that foreclosures were down 26% in July from the previous month in the Bay Area and 8% from a year earlier when there were virtually no foreclosures.

“These high prices are actually a benefit for homeowners in financial distress,” Sharga said.

Unfortunately, for many homeowners, monthly mortgages are still stressful.

Reginald Pearson lost his job as a plumber last September. He has almost exhausted all his savings and does not know how he will pay on the mortgage in the near future.

“We have a good mortgage payment. So we’re not totally stressed, but it’s not comfortable at all, ”Pearson said.

Maeve Eliza Brown from Housing and Economic Rights Defenders says her organization’s housing program is receiving many calls from homeowners worried they won’t pay.

“We are seeing an overrepresentation of African Americans and Hispanics,” Brown said.

The National Foreclosure Plan gave troubled homeowners temporary leave to pay, even as their debt grew.

These payments can be made as early as September 30th, when it is planned to complete this abstinence program.

Pearson, who bought his new home shortly before being fired, says he doesn’t need patience yet, but wonders how long he can last.

“Most likely October, November before something happens. I’m going to take some other steps, ”Pearson said.

Brown says it may be possible to extend the abstinence program, as it has done on several occasions.

This would be good news for many.

“So people who had a hard time before the rules of abstinence were still going through terribly difficult times,” she said.

Brown agrees that we can prevent another mortgage collapse. Pearson says he is confident he will find a solution to his problem.

Check out other stories and videos from Michael Finney and 7 are at your side.

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