- Hundreds of thousands of homeowners could soon lose or sell their homes as Covid-related mortgage bailout programs expire.
- There are not a lot of options for borrowers who lost too much income or their businesses during the pandemic, although they could take advantage of high equity in their homes and sell.
- That has not been the case so far. A data firm found that nearly a third of borrowers who go start the foreclosure process with at least 40% equity in their homes go to foreclosure anyway.
- “They may have equity, but then it’s a matter of where they going? Where are they going to go? Where are they going to purchase?” said a housing counselor.
Hundreds of thousands of homeowners could soon lose or sell their homes as Covid-related mortgage bailout programs expire.
The federal government, big banks and mortgage servicers started emergency programs when the pandemic hit early last year, shutting down vast swaths of the economy. The bailouts allowed millions of homeowners to miss payments, some for up to 18 months.
“We’re in the midst of the largest transition out of forbearance we’re likely to see, with three-quarters of a million homeowners leaving plans over the past 60 days,” said Andy Walden, vice president of market research for Black Knight.
The programs were largely successful.
Diana Olick | CNBC