Las Vegas Real Estate foreclosures
Las Vegas Real Estate foreclosures – The health crisis we face as a country has led businesses all over the nation to reduce or discontinue their services altogether. This pause in the economy has greatly impacted the workforce and as a result, many people have been laid off or furloughed. Naturally, that would lead many to believe we might see a rush of foreclosures like we saw in 2008. The market today, however, is very different from 2008. The concern of more foreclosures based on those that are out of work is one that we need to understand fully. There are two reasons we won’t see a rush of foreclosures this fall: forbearance extension options and strong homeowner equity. 1. Forbearance Extension Forbearance, according to the Consumer Financial Protection Bureau (CFPB), is “when your mortgage servicer or lender allows you to temporarily pay your mortgage at a lower payment or pause paying your mortgage.” Thisis an option for those who need immediate relief. In today’s economy, the CFPB has given homeowners a way to extend their forbearance, which will greatly assist those families who need it at this critical time. Under the CARES Act, the CFPB notes:
“If you experience financial hardship due to the coronavirus pandemic, you have a right to request and obtain a forbearance for up to 180 days. You also have the right to request and obtain an extension for up to another 180 days (for a total of up to 360 days).”
2. Strong Homeowner EquityEquity is also working in favor of today’s homeowners. This savings is another reason why we won’t see substantial foreclosures in the near future. Today’s homeowners who are in forbearance actually have more equity in their homes than what the market experienced in 2008. The Mortgage Monitor report from Black Knight indicates that of all active forbearances which are past due on their mortgage payment, 77% have at least 20% equity in their homes(See graph below):
Black Knight notes:
“The high level of equity provides options for homeowners, policymakers, mortgage investors and servicers in helping to avoid downstream foreclosure activity and default-related losses.”
Las Vegas Real Estate Foreclosures – Conclusion:
As we wrap up this informative journey through the Las Vegas real estate market, let’s take a moment to address some concerns that may be on your mind. In particular, the possibility of an impending foreclosure crisis akin to 2008 is a common worry among many. However, it’s crucial to underline the fact that today’s real estate environment is fundamentally different and considerably more resilient than what it was over a decade ago.
Unlike the precarious position many homeowners found themselves in 2008, today’s homeowners generally enjoy robust equity. This means that they are much less likely to owe more on their mortgages than their homes are worth, thereby reducing the risk of a wave of foreclosures. This stronger equity position is a beacon of stability in an otherwise stormy sea of economic uncertainties.
Moreover, it’s crucial to note that there are comprehensive plans in place designed to help those impacted by potential economic downturns. These strategies are intended to offer a safety net to those in need, providing them with the necessary support and resources to navigate challenging financial situations.
In essence, while there are challenges ahead, they are far from insurmountable. Indeed, the robustness of equity and the availability of support mechanisms create a strong buffer against the potential impact of economic headwinds.
Now, navigating these complexities and the subtleties of the real estate market can be a daunting task. That’s why it’s so important to have an experienced real estate agent at your side – and that’s where I come in. With over 20 years of experience in the Las Vegas market, I’ve been through all the ups and downs, twists and turns, and I’m ready to put that experience to work for you.
Whether you’re looking to buy, sell, invest, or just need some friendly, professional advice, don’t hesitate to reach out. I’m here to offer you informed, timely, and honest guidance, helping you make the most out of your real estate journey. As the premier real estate agent in Las Vegas, I’m committed to providing my clients with the best possible service and expertise. I look forward to hearing from you and assisting you with all your Las Vegas real estate needs.
