How Coronavirus Crisis Will Affect Home Foreclosures
Q: Do you think the Covid-19 pandemic will cause more home foreclosures? Victor, Bronx, NY
A: In the short term, lenders will be eager to at least try to rework or modify mortgage loans particularly with the foreclosure moratorium that currently exists–this will stave off an increase in foreclosures for the time being. However, the mortgage forbearance that banks are currently offering is not debt forgiveness and at some point later this year or next year, those mortgage payments will be due–if borrowers are still unemployed or underemployed and have burned through their savings, there will be an expected increase in foreclosure actions with income or lack thereof as is normally the case being the biggest driver. Thanks for your question, Victor.
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