Here’s my opinion on what the end of the eviction moratorium means.
What’s the deal with the eviction moratorium ending? Some people are saying everything will be fine, while others are saying we’ll see a wave of foreclosures. Who is right? Today I’ll tell you everything you need to know about the end of the eviction moratorium.
Those who claim we’re heading towards a crash are saying so because they think there is a wave of foreclosures right around the corner. During the pandemic, a lot of people went into forbearance. Now that the eviction moratorium is over, these people will have their homes foreclosed on, and it will be like 2008 all over again. Some people are even worried about landlords who couldn’t pay the mortgage because renters weren’t paying rent. In my experience of managing properties, I haven’t seen a lot of tenants missing rent because we vet our clients thoroughly. However, this doesn’t necessarily reflect the rest of the country.
On the other hand, some people say the market is so strong that people who have missed payments can leverage the equity in their homes to avoid foreclosure. Prices continue to rise, and inventory is still low. If the worst happens, our market can handle it.
Where do I fall along these lines? In my opinion, we may see some foreclosures soon. There’s probably a backlog from the last 18 months, even if it isn’t huge. Despite this, I do not expect to see a crash like we saw in 2008. Even if someone hasn’t made their payment for several months, the market is so hot that most people will successfully leverage their equity. I don’t expect the small increase in foreclosures to affect our market.
If you are looking to leverage the equity in your home to avoid foreclosure or if you have any real estate-related questions, please reach out to me via phone or email. I look forward to hearing from you.