Is a home foreclosure tsunami ahead for Dallas-Fort Worth and the nation?
Top housing economists don’t foresee a big wave of D-FW and U.S. home foreclosures as federal mortgage forbearance programs end.
Millions of American homeowners have been sheltered from foreclosures since the start of the COVID-19 pandemic.
But with mortgage forbearance programs and foreclosure moratoriums winding down, is there going to be a surge in home foreclosures?
While some investors are hoping to see a rise in problem properties, top real estate market economists don’t anticipate a huge number of forced home sales by lenders.
“We don’t think we are going to see a tsunami of foreclosures occurring,” said Dr. James Gaines, the longtime economist with the Texas Real Estate Research Center at Texas A&M University. “I don’t think we will start seeing anything until the first half of next year.
“It’s a relatively small number of homes still getting mortgage forbearance.”
At the end of August, only about 3% U.S. home loans were in forbearance plans, according to the latest estimate from the Mortgage Bankers Association of America. That adds up to about 1.6 million homeowners.