It Is 2008 Again, Right?

I recently shared 2 other graphs related to the question "can we expect another foreclosure crisis?" Here is a link to the latest one: https://www.dhirubhai.net/pulse/foreclosure-crisis-again-blair-ballin

The chart/graph above solidifies the answer: We are NOT.

91% of the homes in forbearance have greater than 11% equity. Assuming it costs 7% to transact a home with a Realtor/title company/attorney, there is only a small percentage of these homeowners that would have to "short sale" potentially to "cover" the difference. Not everyone with equity always wants/needs to sell, I get it. But, remember, in 2007 as the market was crashing, an astonishing number of homes were over encumbered. Other than a moral reason in most cases, there was little need to try to keep a home. So, people let them go. Equity was one of the issues. Maybe the biggest. Many people were using equity for non asset related purchases, leaving a maxed out credit card basically with nothing to show for it.

Yes, some people have lost jobs, and no matter the reason are in forbearance. The stats though, are pointing to most successfully getting out of it, and for the ones that aren't or can't--the majority could sell and still have equity. This article is not about if they should or will, or the affect of that home hitting the market. It is only about a foreclosure crisis...again.

There won't be one. Period.