Will we see a higher number of foreclosures?
The experts say no and this is one reason why.
Here’s a chart from the Wall Str Journal. Of all of the people that took a forbearance, 4% have had their payment holiday expire and could not re-start payments and are now actively delinquent. This supports our hypothesis that this would not lead to a material number of short sales and foreclosures. At least in Colorado, most of the people in that 4% bucket will have a lot of equity and should be able to sell their home without distress. - Lon Welsh