There has been plenty of theorizing that our current market frenzy is not liken to the bubble seen 15 years ago. And now, with eviction moratoriums set to expire, experts are also saying there’s little to no reason to worry about an impending foreclosure crisis like that seen in 2008.
Keeping Current Matters broke down the figures, summing up the current state of forbearance in four facts:
There are simply less homes facing foreclosure than there were in 2008. After the last housing market crash, some 9.3 million households lost their homes. As of last week, 1,863,000 mortgages were in forbearance.
Second point: 87 percent of those in forbearance have at least 10 percent equity in their homes, which affords the homeowners the opportunity to sell their houses and pay the related expenses instead of facing the hit on their credit.
Thirdly, those homes that would be up for sale would be more than welcomed in this current inventory crunch. Back in 2008, there was an inventory surplus, tipping the scales in the other direction.
And finally, more assistance is in the works. Keeping Current Matters points out that the White House just announced plans to help those homeowners with federally backed mortgages.
You can read more from Keeping Current Matters here.