Soldavi Realty is here to help you during uncertain times, especially when so many have concerns whether foreclosures loom on the horizon. Below you will find just some of the information about foreclosures, new forbearance dates, and where California stands among all these rules and confusion.
Unemployment, economic troubles, and issues caused by COVID-19 have made people deeply concerned about their ability to pay their mortgages. It is a worrisome time, and owning a home brings stress at the best of times. One of those worries is the Supreme Court’s debate about changes in forbearance due dates. Currently, the Federal Housing Administration’s new guidelines have pushed the deadline to request mortgage forbearance to September 30, 2021. However, with a couple of exceptions, things aren’t so bad for California.
“Extensions to the Federal Government’s foreclosure moratorium and CARES Act mortgage forbearance program continue to keep foreclosure activity historically low,” said Rick Sharga, executive vice president of RealtyTrac, an ATTOM Data Solutions company. He goes on to explain that these actions have assisted lenders throughout the country. There is no reason why they can’t continue to help.
The good news is that even though nationwide foreclosure rates are climbing, California is not among the highest according to ATTOM’s May 2021 Foreclosure Market Report. In May 2021, states with the highest foreclosure rates were Nevada, Delaware, Illinois, Florida, and New Jersey. According to ATTOM Data Solutions, California counties that experienced the most foreclosure starts in February 2021 were Los Angeles County and Riverside County, but in general, across the country, the rate of foreclosures has slowly increased 36% over the prior year.
“While the increase in foreclosure activity is significant, it’s important to keep these numbers in perspective,” according to Sharga. “Last year’s numbers were extraordinarily low due to the implementation of the foreclosure moratorium and the CARES Act mortgage forbearance program, so the year-over-year numbers look a lot more dramatic than they are.”
Mostly, owners are nervous when it comes to talking about foreclosures. The words market crash are whispered with fear. All the talk of unemployment and the drastic changes in our society created by COVID-19 have left us all feeling uncertain. Owners constantly ask whether that dreadful crash looms on the horizon. But the fact is the market is relatively stable. Even the last five recessions brought only two market declines in real estate values. So, although no one can promise there won’t be a crash, it is unlikely to happen.
Purchasing a house right now is the real challenge. Home buyers have been forced into bidding wars because of historically low mortgage interest rates creating a high demand for houses. Soldavi can help navigate you through the sometimes rough waters of the real estate environment. Our friendly and knowledgeable Merced Realtors can help you sell your property or locate the home of your dreams. Contact us today to get started!