One of the things I'm hearing from a financial standpoint is there will be zero tolerance for “strategic defaults,” where homeowners paid all the other bills and deliberately didn’t pay their mortgage. During the recession, they were able to short sale they're home and got away with an awful lot. This time the lenders aren’t going to make the same mistake again. They will be checking credit reports to see if their mortgage payment is the only thing they are avoiding.
There’s a major potential pitfall lurking in the market, which is the potential for a high number of forbearances. If we get to the second quarter of 2021 and the number of loans in forbearance remains high, we could see homes begin moving onto the market, and foreclosures increase.
Do you know someone who has been unable to make their house payments due to COVID-19 and are in forbearance? If so, they may be facing foreclosure. Contact me regarding options to avoid facing foreclosure.
Tim Sharp(865) 705-2062 | Lindsey Sharp (865)-705-6062 | Steve Albin* (865) 235-1520 | Just Listed Knoxville REALTORS