Is a Foreclosure Tidal Wave Coming?

Is there a foreclosure tidal wave coming? Will you need to sell your house fast?

The answer to the question of a foreclosure tidal wave coming is maybe yes or maybe no. Present times are too uncertain for this determination. Depending on what part of the country you live in, this may impact the answer as well. We probably will not see a crash like the 2007/2008 market (especially here in El Paso County, Colorado).

Several different factors from our current situation played a part in that housing market crash. With that being said, foreclosure filings, however, have increased since the mortgage moratorium ended on September 30th, 2021.

What Was the Mortgage Moratorium?

“A moratorium period is a period during a loan term when the borrower is not obligated to make a payment. It is a waiting period before the borrower starts making fixed monthly payments.” (Bankrate).

Another thing mortgage companies were doing to help homeowners during the height of the COVID crisis was a forbearance; “a forbearance, which permits them to stop making mortgage payments temporarily.” (The Washington Post)

Now that the moratorium is no longer in place, “Lenders can proceed with foreclosures, especially for borrowers who have abandoned their properties or haven’t responded to outreach from their mortgage servicers.” (The Washington Post).

What Happens During Foreclosure?

There are several steps and many deadlines in the foreclosure process. In the following link, a local Colorado Springs Title company describes the Foreclosure Timeline. Empire title company foreclosure timeline. (Please note that the timetable is dated 2008/2009, but it is still in effect at the time of this writing).

Seeing this timeline, you may think you have plenty of time. But why wait? Going through a possible foreclosure can be an excruciating process. Many emotions and stresses can be associated with a foreclosure. Things like fear, hurt, anger, and shame; just to name a few. Let us help you avoid this painful situation.

The Bonnie Buys Houses Fast staff is caring, knowledgeable, efficient, and experienced and can help sell your house fast and avoid this pain. There is far less stress involved, and you will avoid the potential ramifications of the foreclosure.

Are There Any Ramifications of a Foreclosure?

A foreclosure will be reported on your credit reports. Per Experian, “A foreclosure stays on your credit report for seven years from the date of the first related delinquency, but its impact on your credit score will likely diminish earlier than that.”

Can you buy another house after going through a foreclosure? Yes, but “Many lenders require a minimum waiting period after a foreclosure before you can apply for a new mortgage loan: three years for FHA loans. Seven years for Fannie Mae/Freddie Mac loans. two years for Veterans Affairs loans.”

Solution

Will you need to sell your house fast to avoid foreclosure? Let Bonnie Buys Houses Fast help you avoid the possible coming foreclosure tidal wave. Bonnie Buys Houses Fast will make the process of selling your house fast and hassle-free.

Check out our Google Reviews and see how we’ve helped others with their various needs. With this being said, it’s probably best to avoid foreclosure and try to sell your house fast with someone like Bonnie Buys Houses Fast.