fbpx

2 Reasons We Won’t See a Rush of Oakland CA Real Estate Foreclosures This Fall

The health crisis we face as a country has led businesses all over the nation to reduce or discontinue their services altogether. This pause in the economy has greatly impacted the workforce and as a result, many people have been laid off or furloughed. Naturally, that would lead many to…

Share:

Share on facebook
Share on twitter
Share on linkedin
Share on tumblr
Share on pocket

The health crisis we face as a country has led businesses all over the nation to reduce or discontinue their services altogether. This pause in the economy has greatly impacted the workforce and as a result, many people have been laid off or furloughed. Naturally, that would lead many to believe we might see a rush of foreclosures like we saw in 2008. The market today, however, is very different from 2008.

The concern of more foreclosures based on those that are out of work is one that we need to understand fully. There are two reasons we won’t see a rush of foreclosures this fall: forbearance extension options and strong homeowner equity.

1. Forbearance Extension

Forbearance, according to the Consumer Financial Protection Bureau (CFPB), is when your mortgage servicer or lender allows you to temporarily pay your mortgage at a lower payment or pause paying your mortgage.” This is an option for those who need immediate relief. In today’s economy, the CFPB has given homeowners a way to extend their forbearance, which will greatly assist those families who need it at this critical time.

Under the CARES Act, the CFPB notes:

 “If you experience financial hardship due to the coronavirus pandemic, you have a right to request and obtain a forbearance for up to 180 days. You also have the right to request and obtain an extension for up to another 180 days (for a total of up to 360 days).” 

2. Strong Homeowner Equity

Equity is also working in favor of today’s homeowners. This savings is another reason why we won’t see substantial foreclosures in the near future. Today’s homeowners who are in forbearance actually have more equity in their homes than what the market experienced in 2008.

The Mortgage Monitor report from Black Knight indicates that of all active forbearances which are past due on their mortgage payment, 77% have at least 20% equity in their homes (See graph below):

20200722 MEM ENG | Range Homes

Black Knight notes:

“The high level of equity provides options for homeowners, policymakers, mortgage investors and servicers in helping to avoid downstream foreclosure activity and default-related losses.”

Bottom Line

Many think we may see a rush of foreclosures this fall, but the facts just don’t add up in this case. Today’s real estate market is very different from 2008 when we saw many homeowners walk away when they owed more than their homes were worth. This time, equity is stronger and plans are in place to help those affected weather the storm.

Why East Bay CA?

East Bay CA is known for it’s good economy, beautiful landscapes and extremely popular housing market. When other states and territories have experienced decline in housing prices the Bay Area in general has remained strong. This doesn’t mean you should not diversify your portfolio across many states, but East Bay CA Real Estate, particularly Oakland CA real estate, is certainly a strong place to start for a novice investor. There are even some great low cost homes that are ripe for renovation.

2 Reasons We Won’t See a Rush of Oakland CA Real Estate Foreclosures This Fall
A late November storm rushed through the Diablo Valley in just a few hours, but left some nice light in the sky as the sun set. This 1×4 ratio panorama (3600h x 10,800w) shows fine detail and no pixelation even when printed at 6ft wide. The fall colors from the planted street trees is at its best at this time of year. The native trees do not have fall color. This is the view from Dinosaur Hill Park looking east.

Need More Information About Oakland CA Real Estate?

We have a team of friendly, helpful staff & agents that specialize in East Bay CA real estate, including Oakland CA real estate, and property sales that can help you work out how to best get your property portfolio started. Our agents are here to put your needs first, get you the best deals and offers, help you buy or sell your dream home and build your investment portfolio. Reach out to our team today to find out your options and get more information about the Oakland CA real estate market.

If you are looking to find an East Bay Realtor, or looking for homes for sale in East Bay CA, or even to sell your home with someone who will make sure you get the best deal and understand your needs – look no further – when you work with us, consider yourself family.

Buy & Sell Your Next Property with Range Homes

BUY

Buy your next home in the East Bay area with Range Homes
Trust Range Homes to Sell your East Bay home
Check out Range Home’s current East Bay homes for sale
You are in safe hands

When you work with us, consider yourself family

Get in touch today

Mark Pages-Oliver, MBA – DRE:02020349 | Lisa Caldwell – DRE:01267745 | Range Homes – DRE:02111757

Mark Pages-Oliver, MBA – DRE:02020349

Lisa Caldwell – DRE:01267745

Range Homes – DRE:02111757

Copyright 2021 © Range Homes. All Rights Reserved | Privacy Policy

Copyright 2021 © Range Homes.

All Rights Reserved | Privacy Policy

Site by Soto

Request a Callback

Request Training

Event Registration

Can't find what you are looking for?

We are always keen to explore adding new and different events to our community pages. So if you can’t find what you are looking for, let us know today and we will get on to it right away!

Become a Listed Provider

Can't find what you need?

We are always keen to explore adding new and different providers to our website. So if you can’t find what you are looking for, let us know today and we will get on to it right away!

Give us some Feedback

Please enter your email, so we can follow up with you.
Selected Value: 0