Today, in the Real Estate Newsletter: As Forbearance Ends
Excerpt: An analysis from Black Knight today, in their monthly mortgage monitor, indicates most borrowers are successfully leaving forbearance. Out of the 7.7 million borrowers that entered COVID related forbearance, only a small fraction are in foreclosure or delinquent (and not in active loss mitigation). Here is a chart from Black Knight:
In a previous post, Forbearance Will Not Lead to a Huge Wave of Foreclosures, I presented some data and argued “that most homeowners in forbearance have sufficient equity in their homes, and there will not be a huge wave of foreclosures like following the housing bubble.”
So far, the data suggests the vast majority of borrowers that were in forbearance will return to current status. I’ll continue to track the data over the next few months, but this isn’t a huge concern.