Here’s a look at why that isn’t the case.
1. There Are Fewer Homeowners in Trouble This Time
38.6% left the program paid in full
- 19.9% made their monthly payments during the forbearance period
- 11.8% made up all past-due payments
- 6.9% paid off the loan in full
44% negotiated work-out repayment plans
- 29.1% received a loan deferral
- 14.1% received a loan modification 0.8% arranged a different repayment plan
0.6% sold as a short sale or did a deed-in-lieu
16.8% left the program still in trouble and without a loss mitigation plan in place.
2. Those Left in the Program Can Still Negotiate a Repayment Plan
3. Most Homeowners Have More Than Enough Equity To Sell Their Homes
4. There Have Been Far Fewer Foreclosures
5. The Current Market Can Easily Absorb Over a Million New Listings