DALLAS – The economic impact of the coronavirus could lead to another mortgage crisis.
Foreclosures are expected to skyrocket as people struggle to pay their home loans.
It’s on the horizon and different from 2008 when there was a lot of creative financing and many had little or no equity built up. These are people who have been in their homes but have been financially affected by the pandemic.
The coming months could bring a coming coronavirus mortgage crisis.
“We’re not seeing a ton of foreclosures, which is surprising. But we are forecasting the industry is forecasting an increase in foreclosures,” explained real estate attorney Rachel Kirallah. “These are homeowners that have been in their homes that have been impacted by the pandemic.”
Many people have been laid off. Others are taking pay cuts. Some businesses closed during the rage of COVID-19.
Under the CARES Act and forbearance programs, many people had mortgage payments suspended for a specific period of time.
“A lot of those are coming up on the expiration of those three or four months. And so it’s going to be a really tough time for homeowners who are already delinquent or behind or heading into that direction,” Kirallah said.
Terry Tremaine is president of the Metro Tex Association of Realtors.
“It is totally unbelievable. As properties come on the market, they are sold within days,” he said.
Eight percent of homeowners across North Texas are at least one payment behind on their mortgage. Ten percent are in the Houston area.
“That is the rumor that’s going around. We haven’t seen any foreclosures coming on the market as of yet,” Tremaine said. “But people are being laid off. Mortgage payments are hard to make, so that is a possibility that we will see that in the spring.”
It is, it seems, two extremes.
For some homeowners, it will be a tough year for those who are struggling to make payments.
But for others, it’s a great market with great interest rates.
Both professionals advise you to call your mortgage company if you are falling behind on payments, and make sure you open any mail you receive from your lender.
FOX 4 News is a FOX-owned station serving Dallas-Fort Worth and all of North Texas.
More info on Coronavirus pandemic could lead to another mortgage crisis
- Could COVID-19 cases keep doubling? Hospital leaders urge masks, distancing to tame virus
But they worry that cases could ... as another alarm inside the past week from health and elected officials about the course of the coronavirus pandemic. Doctors at the news conference, who have been ...
- Coronavirus: Embrace Posttraumatic Growth as Response to Pandemic
With a positive approach to change, healthcare workers and their organizations can emerge from the pandemic stronger and more resilient.
- Coronavirus pandemic is causing 'unacceptable' shortages in US drug supplies, report says
Researchers said the pandemic has "jolted the global pharmaceutical market at all levels and production points." ...
- How the coronavirus pandemic could affect the US elections
In the same way that it made 2020 unique, the coronavirus pandemic has already have - and undoubtedly will have - far-reaching effects on the US elections. From Donald Trump’s own recent diagnosis of ...
- Despite pandemic threat, gubernatorial hopefuls avoid COVID nitty-gritty
Just 15 days ahead of the election, Montana Lt. Gov. Mike Cooney laid out his ideas on how he’d handle the COVID-19 pandemic if elected governor. Details were few, but ...
- Totally Under Control Exposes How A Trump Second Term Could Lead To Another Pandemic
After more than nine months of dealing with the coronavirus pandemic, it’s blatantly obvious that the Trump administration has grossly mishandled the U.S. response — and with earth-shattering ...
- Trust in science wanes, another casualty of coronavirus pandemic
Trust has been damaged by White House intrusions and the FDA’s mistakes. This year, the agency granted emergency authorization to hydroxychloroquine, the malaria drug wrongly to ...
- Report says pandemic could lead to affordable housing crisis in Memphis
“Experts predict that the pandemic could cause a housing ... s happening now during COVID-19 to 2008. “The neighborhoods most impacted by the subprime mortgage crisis back in 2008 are also ...
- Lead testing plummets during the pandemic, an alarming development for Michigan children
Lead exposure can lead to developmental delays ... to normal before the end of the year. It's another sobering side effect of the coronavirus pandemic, which has killed more than 6,700 Michigan ...
- 1 Million Mortgage Borrowers May Be Missing Out on Coronavirus Relief
If you're having a hard time paying your mortgage right now, you need to read this. The coronavirus pandemic ... you can request forbearance and at least get a temporary reprieve. Another thing ...
- Coronavirus crisis and 5 examples of good business leadership during the pandemic: Lee Carter
Get all the latest news on coronavirus ... businesses can’t pass go without acknowledging the impact that those changes or delays have on all of us. Statements that lead with what the company ...
- Coronavirus crisis – These are some of the financial 'dominos' that could still fall
And many of them fell well after the initial crisis hit. CORONAVIRUS ... the chips fall then? Could this lead to not only economic sanctions but something far worse? Another ‘wild card ...
