You may have heard something called the foreclosure moratorium. That’s essentially a big pause button the federal government implemented during COVID-19. That stopped banks from foreclosing on people who were behind in their mortgage. That moratorium is ending at the end of July. So does that mean we’re about to see a huge wave of foreclosures?
A study out of Harvard says that 9% of American homeowners are behind on their mortgage payments during the first quarter of this year. That’s a lot.
There are options though for people behind on the mortgage. There are other programs from individual banks to help people. It’s not in anyone’s best interest to let a wave of foreclosures come crashing down on the housing market.
Plus the market is still very good so homeowners that are having trouble making mortgage payments can always sell to avoid foreclosure.
What’s going to happen? Well we’ll see.