With over three million homes in forbearance and those forbearances are expiring. Banks want their money, and they want it all in a lump sum. The pandemic is still killing thousands every day, and yet there is a shortage of homes for sale. Will 2021 bring the real estate crash and burst this bubble?
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What Does Forbearance Mean?
In the context of a mortgage process, forbearance is a special legal agreement between the lender and the borrower to stop payments on a debt for a period of time or delay a foreclosure. The literal meaning of forbearance is “holding back”
The scenario for a Real Estate Crash
Unemployment rates are outrageous. No more stimulus checks have been set to be sent out and the vaccine now has been extended.
3,000,000 homes are in forbearance and now expiring. Will those 3,000,000 plus homes go into foreclosure or a small percentage? Real estate crash in 2021, what will happen? How will the real estate market react?
Will the Housing Market Crash?
It’s hard to predict when the next housing market crash will happen. But according to most experts can tell, 2021 is still not the year for that. However, some local markets are more likely to experience price drops than others. But still, predictions are not pointing to a crash in prices as they did back in 2008 in almost all states in the US.
A Final Tip
SAVE MONEY! This year will not be bad, but neither the best. So for sure it’s not the right time to spend money buying unnecessary stuff. That motorcyle, new purses, watches, or luxury remodeling, all that can wait a little longer for now. Trust ME!
Realtor Marketing Specialist & Navy Veteran
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