Q: Should I wait for foreclosures to hit the market in 2021 to start my home search?

This is a question I've been getting frequently and it's a smart question to ask but the answer might not be what you think..

As homeowners started entering forbearance earlier this year, many started to think that it would result in foreclosures down the road. 

At this point though, other factors tell us otherwise:

1. According to the Mortgage Banker's Association (MBA), the number of forbearance loans have been steadily decreasing.

2. According to CoreLogic, in the second quarter of 2020, the average homeowner gained approximately $9,800 in equity during the past year which means they should have the ability to sell if needed vs going into foreclosure.

Lastly, as stated in an article by Keeping Current Matters, Ivy Zelman, Founder of Zelman & Associates, mentioned in a recent podcast:

“The likelihood of us having a foreclosure crisis again is about zero percent.”

So if you're waiting for a rush of foreclosures to hit the market, you might be waiting quite awhile. 

In addition, with interest rates hitting historic lows in 2020, buying now and locking in a low rate could make a big impact in your mortgage payment.

If you have other questions about interest rates, the home buying process or foreclosures, drop them below!

SOURCES: 

https://www.mba.org/2020-press-releases/october/share-of-mortgage-loans-in-forbearance-declines-to-632

https://www.corelogic.com/insights-download/homeowner-equity-report.aspx

https://www.simplifyingthemarket.com/en/2020/11/05/why-the-2021-forecast-doesnt-call-for-a-foreclosure-crisis/?a=63898-c6e74ee690f07d48c1c98d5b5159d8f9