More than eight percent of mortgage loans are currently in forbearance, which could mean coming economic distress from mortgage delinquencies. And more foreclosure clean-outs.
When it comes to the housing market in general, home sales are expected to rebound as concerns about coronavirus begins to fade. However another dip in sales is anticipated later in the year as a result of a possible rise in infections along with ongoing unemployment, which may lead an up-and-down recovery for the economy as a whole.
According to Realtor.com, the national housing forecast for 2020 includes these points:
- Home price growth will flatten, with a projected increase of 1.1 percent
- Inventory will remain low, but the rate of decline steadies and the mix of homes for sale shifts toward greater availability of lower-priced homes
- Mortgage rates remain low and may slide under 3 percent by the end of the year
- Home sales are constrained by low inventory and diminished seller and buyer confidence as the effects of COVID linger in the labor market
- Buyers seeking affordability and space drive interest in the suburbs
Enter COVID-19 and the Economic Shutdown
But what does all this mean for projected foreclosures?
According to Realtytrac.com’s foreclosure forecast summary for June 2020,
“There are currently 304,765 properties in U.S. that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 781,319.
In May, the number of properties that received a foreclosure filing in U.S. was 38% lower than the previous month and 84% lower than the same time last year.”
This has been the trend with foreclosures and distressed properties for most of the last three years, but it is uncertain if it will continue in light of the highly probable recession coming on. In any other scenario, this would precipitate a new wave of mortgage defaults and subsequent foreclosures.
However, recent moves by the federal government has temporarily forestalled that consequence. At least for now, anyway. According to a June 21, 2020 post at the Norada Real Estate Investments’ blog,
“To help borrowers and renters who are at risk of losing their home due to the coronavirus national emergency, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) are extending their moratorium on foreclosures and evictions until at least June 30, 2020.
The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The current moratorium was set to expire on May 17th. Interest rates are already at an all-time low, which allows homebuyers who qualify. That gives potential home sellers hope, though it will take time for these low-interest rates to offset the spike in unemployment and general economic malaise.”
The Federal Housing Administration (FHA) announced June 17th, that it is extending foreclosure and eviction moratoriums through August 31 for homeowners with FHA-insured single-family mortgages. The current moratorium was set to expire on June 30, 2020.
On June 29th, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) are allowing servicers to extend forbearance agreements for multifamily property owners with existing forbearance agreements for up to three months, for a total forbearance of up to six months.
In March, HUD had directed mortgage servicers to halt all new foreclosure actions and suspend those already in progress. There were 8.1 million active FHA loans at that time and it was unclear then how many families would have been facing foreclosure because of the current economic challenges and the fallout from extended job losses and unemployment.
However, going into the last week of June 2020, almost 4.7 million homeowners were in mortgage payment forbearance plans, allowing them to delay their mortgage payments for at least until the end of August, depending on their servicer.
When a Foreclosure Clean-Out is Needed
So, whether you are still dealing with a previous foreclosure that remains unsold, or you will be working with new foreclosed homes sometime in the fall, a foreclosure clean-out is needed.
This also means that an existing property needs to be maintained and periodically cleaned until it is able to be put on the market.
Here is a handy foreclosure clean-out checklist to aid in the process for those who find themselves needing to undertake that task.
Foreclosure Clean-Outs as a Team Effort
Fortunately, there are many professionals available to assist in a foreclosure clean-out.
It is not at all unusual to hire professional firms specializing in foreclosure and estate clean-outs for the cleaning portion of the job. And, because the outside of a property is just as important as the inside when it comes to selling a home, there are professionals for that, too. Competent landscaping and lawn maintenance companies can be hired when outdoor areas to be cleaned and “spruced up.”
Also, with many foreclosure situations, there’s junk that has to get hauled away.
In some cases, there may even be excessively large items or large amounts of trash, such as old furniture, household goods, and other junk that will require a team of professional junk haulers.
That’s when you should call in a reliable firm like Junk King.
The Best Junk Hauling Pros For Your Foreclosure Clean-Out
Junk King is the leading business to business junk removal service in North America and our real estate junk removal services take care of the clean-out process for you.
We understand that as a real estate professional you need your homes to be pristine and you want to be able to list them as quickly as you can.
Junk King offers fast and friendly junk hauling with an emphasis on eco-friendly practices. We recycle or donate 60% or more of the junk we collect — including renovation debris, furniture and appliances, and even clothing and personal items. Real estate ventures can proudly call Junk King their green partner for real estate junk removal.
We are insured and offer post-escrow payment. Junk King handles junk removal services for real estate professionals across the U.S. and we are the highest rated service brand in the nation. You can depend on Junk King for speed, reliability and for the peace of mind that comes with getting your property ready fast.
Our professional and insured junk disposal team will call 15 minutes before we arrive on site. We’ll give you a free estimate based on how much room your items take up in our truck. You just point and we haul your junk items into our junk removal trucks, with no hidden fees.
It’s as simple as 1, 2, 3. You can make an appointment by booking online above or by calling 1.888.888.JUNK (5865).