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Foreclosures SURGE As Covid Mortgage Bailouts End

Before you start contacting me for the next amazing deal on a foreclosure property in the Bay Area, let's review some of the information we have available... I have always marked this coming jump in foreclosures as more of a canary in the coal mine event than the beginning of a real estate downturn. California tops the national list with 3,434 foreclosures recorded in September, but this is likely a representation of the large housing inventory we have. Experts are connecting this jump of foreclosures to the end of government and private-sector relief programs which allowed borrowers with financial difficulties to delay their monthly payments for up to 18 months. Unlike the previous foreclosure crisis, many homeowners were able to get current on their payments right after the relief programs ended or are in a better position to work with lenders for ways to find creative solutions. The main reason we are not likely to see a rise in foreclosures in the Bay Area is because home prices have continued to climb, and homeowners have equity in their home if they are in a position to have to sell and not owe money to their lender.


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