Foreclosure Protections Are Ending… Again.

Since the inception of the COVID-19 Pandemic, homeowners were thrust into a chaotic jungle of assistance programs and options to avoid subsequent foreclosures. This meant the U.S. housing market would soon have much less inventory as homeowners held onto their dwellings without penalties for non payment. As convenient as this moratorium on foreclosures seemed at the time, it created a disruption in the U.S. housing market and economy, one that would show its true colors once the COVID nightmare drew to an end. Today as we see life return to normal, so does the housing market, as increased inventory is stretching out the average days on market and slowing the rate of appreciation in most neighborhoods. The return of normalcy to the world and economy is long overdue, yet it places those who needed assistance to retain ownership in an adverse situation.

During COVID-19, many mortgage payments were stopped, but they were not forgiven. At the end of the day the bank is in the business of loaning money and making interest, if a bank does not receive payment, a bank cannot function, as many found out during the mortgage meltdown of the late 2000s. COVID forced banks to navigate the economy during a tumultuous time as payments were deferred and interest rates were obliterated. This state of fire-selling new loans at historic rates while working around unemployment has led many to compare the post COVID economy to the economy prior to the 2008 reset. As time goes on and COVID assistance programs are extended further, it is obvious the U.S. economy is being propped up; once the stand is taken away will meet a historic end. During July of this year, financial titan Wells Fargo, terminated all personal lines of credit, further discouraging optimism in the future of the post COVID economy.

Homeowners finding themselves in foreclosure have been lucky as the June 30th end date has been extended until the end of July, and many signs from the Biden administration hint it could hand out another extension. As accommodating as these extensions have been, they will soon harm homeowners that rely too heavily on them. The real estate market of the 2000s was compared to a bursting bubble as unwise lending practices led to a snowball effect that devastated the banking and real estate industries. Instead of unwise lending, the current real estate market is being propped up by these government mandated moratoriums, as the lack of foreclosures have led to a housing shortage and a frenzy of buyers seeking today’s historic rates. Those who find themselves in pre foreclosure are wise to sell their house as soon as possible to capitalize on today’s values before the market returns to its’ post 2008 numbers. Extensions of foreclosure moratoriums have delayed the inevitable and those in foreclosure who chose to hang on to their delinquent home may find themselves upside down once inventory increases and values plummet.

Homeowners in foreclosure that are full aware of the situation and the risk they face by hiding behind moratoriums may still chose to do so in fear of embracing relocation in today’s chaotic market. For many, selling their home at maximum value to avoid foreclosure is daunting, as they will be faced with seeking out a home that checks all of their boxes in a market where multiple offers are initiated on most listings. Fortunately, stress free alternatives to avoiding insane market circumstances and foreclosures are possible. At Helpful Homes, we assist residents in both North Carolina and Florida as our business model allows us to purchase homes from clients and assist them in finding their next place, which in many cases is off market. We also work with banks and skilled attorneys to free homeowners from nightmare situations that may include falsified deeds, short sale situations, back taxes, and liens. With the help of Helpful Homes, navigating the post COVID housing market is a stress free process that will save many from foreclosure and the headache of finding a deal when there are none.

COVID-19 has put the housing market into a tailspin and left many facing foreclosure and relying on the mercy of the government to stay in their homes. As the pressure builds from the banks and the moratorium end dates near, it is apparent these situations may not go on forever, and soon homeowners must face the music. Instead of waiting on the government to force homeowners into the inevitable, being proactive about the situation, even in this market, is the wisest thing a homeowner can do. Helpful Homes specializes in helping homeowners out of sticky situations and avoiding foreclosure. No foreclosure situation is the same and with the help and expertise of Helpful Homes, we can guide you in making the wisest decision concerning your situation. Weeks from the next foreclosure moratorium ending, homeowners need options and assistance in navigating the confusing post COVID economy.

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