Foreclosures + Forbearance

Anyone who lived through the 2008 housing market crash, either as a homeowner or someone watching from the sidelines, vividly remembers what that time felt like. Even over a decade later, many people I speak with have serious concerns and questions about what is happening in the current real estate market with that time in their rear view mirror. 

After the last few years in the real estate market, I can't blame anyone for feeling like something is coming. The news headlines, changes in interest rates, post-Covid economics, and more are a lot to think about. With that in mind, I hear this question all the time:

"Are you seeing a lot of short sales/foreclosures on the market given what is happening with forbearance programs?"

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The answer may surprise you: no, we're not seeing a lot of foreclosures and short sales right now, even after the Covid mortgage loan forbearance programs were enacted to help those who needed assistance during the lock downs. Surely you would think that those folks needing that assistance would inevitably need to foreclose or look to do a short sale to get out of their property.

As a matter of fact, the Mortgage Bankers Association released a write up just yesterday (April 17, 2023) that total loans in forbearance fell to 0.55% in March. 

With inventory levels nationwide remaining low, and demand staying high, many folks who are experiencing economic hardship are able to sell their homes without needing to use short sales or foreclosures. Their equity is high enough that they can sell and move on. 

If you are looking to find foreclosures and short sales as a buyer, you may be disappointed to see that right now there just aren't that many available to take advantage of.

Jennifer Schurter is a Realtor and expert marketer serving the Greater Portland, Oregon Metro. If you're looking to get started on the process of buying a home, selling a home, or investing in real estate assets, please reach Jennifer at jen@jenschurter.com.