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Effect of mortgage/rent forbearance on the real estate market?

    • 27 posts
    June 14, 2022 3:40 AM EDT

    The only downside I currently see to the booming real estate market is the end of covid mortgage and rental forebearance coming soon. This will apply to single family occupied homes and rentals that have had rent payment forebearance and the tenants will doubtfully be able to pay. Unpaid payments will come due and their properties will probably be coming into the market because I doubt their payments have been put into the bank, irrespective of the knowledge that they will still have to be paid, without expensive legal action being taken.

    Maybe these properties will be gobbled up quickly because the owners will be very motivated to sell and the demand from cash buyers who have cashed out or refinanced from around the country is still in play, especially in the high demand markets, but it is hard to predict how this will play out.

    • 1 posts
    June 14, 2022 4:40 AM EDT

    Yes, this problem is already on the heels of many families, it's sad to hear, but there is always a solution :)

    • 7 posts
    June 14, 2022 5:08 AM EDT

    I can't even imagine how big the damage to the real estate market will be if there is a rejection of the mortgage / rent. I decided to discuss this topic with my friend in the mortgage industry who works as a Mortgage Advisor Newcastle. We discussed this issue for a long time and came to the conclusion that the probability of this thing is fifty-fifty, because at the present time the real estate market is extremely unstable and anything can happen to it, even experienced investors cannot invest anywhere because of this. I understand them very well, because investors' inaction is equal to job loss. I hope that the real estate market will recover soon and everything will be fine.

    This post was edited by Donald Huisam at June 14, 2022 5:08 AM EDT