When are all the FORECLOSED homes going to hit the market?

Dated: November 18 2020

Views: 582

Maybe you noticed that during the last HOUSING CRASH (2006-2008), tons of homes went into foreclosure, causing a surge of below market priced homes to hit the market.  Annnnd maybe you're thinking that's going to happen again?

Well, I have GOOD NEWS and BAD NEWS:

Good News:  there's a zero percent chance that's going to happen.  No, seriously, the CEO of Zelman & Associates (a highly respected housing leader) said, "The likelihood of us having a housing crisis again is about zero percent."  AND THAT'S GOOD NEWS BECAUSE IT'S A SAD, SAD DAY, WHEN PEOPLE LOSE THEIR HOMES.  (But don't worry...we don't judge you because we know you know that and would be sad for those people, too...you just wanted a good deal on a house).

Bad News:  all the buyers, who have been sitting on the fence, dreaming of the day that a bunch of foreclosed homes would hit the market just got some disappointing news.  

I'm a mind reader, and I know your burning question (jk, I'm not a mind reader, but I still know):  "WHY WON'T THERE BE A BUNCH OF FORECLOSED HOMES HITTING THE MARKET?  I KNOW THAT LOTS OF PEOPLE LOST THEIR JOBS AND COULDN'T MAKE THEIR MORTGAGE PAYMENTS."

That's true, but there is ONE BIG DIFFERENCE this time as compared to the last housing crash:  a robust forebearance program.  ::what does that mean?::  Once the shutdown happened, the government quickly helped create a mortgage forebearance program, which BASICALLY said that a person could put a "hold" on making mortgage payments without risk of it damaging their credit or risking their mortgage going into foreclosure.  At FIRST, there was a chance that there could be a surge of foreclosures because homeowners wouldn't be able to make up those payments once the economic conditions improved, but the government and banks created ways for people to pay back the money over an extended period of time to avoid foreclosures.  VOILE:  people got to stay in their homes, AND they're received the peace of mind of knowing they would get to KEEP their homes.

Here's the reality:  if you are one of those buyers, who was HOPING cash in on that new-found-foreclosure-inventory, we know you wanted that chance because there are SO FEW HOMES FOR SALE these days and just about every home ends up in a "bidding war."  Did you know there are other, affordable ways to get a home?  For instance, most people think that building involves a bunch of money up front, but there are actually builders, who will build your home and then, sell it to you for a set price after it's built - so basically, the same financial experience as if you bought a "traditional home on the market."  Also, did you know that skilled, connected agents have resources for being able to FIND YOU HOMES that aren't on the market?  As my Papa used to say, "there's more than one way to skin a cat."  And as I say, "there's more than one way to find a house."  Just because you don't see a bunch of homes on the market, it doesn't mean they aren't out there.  We just need to get a little creative.  

Until next time,

The Clever Girl

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Tammy Woodbury

My husband and I are the founding members of a top selling Real Estate team in Anderson, SC. I have been a native of the area for over 20 years and attended elementary, middle, high school and college....

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