Are you in Forbearance? Right now Might be the Best Time to Sell!

Roughly 7% of all homeowners are currently in forbearance. Nearly 3.5% of them are already delinquent on their loans! These are numbers we haven’t seen in years.

When a homeowner begins forbearance due to a hardship like a worldwide pandemic, their monthly payments are put on hold to help them get back on their feet. The scary thing is that at the end of the forbearance period, all of those payments that were not payed, are going to all have to be payed back in one big payment. Some people will be able to do that and continue their payments, but some will be forced to sell and downsize to a house that they can afford during that time. 

Quarter 2 of 2021 will be the end of many forbearance periods and some of those people will be forced to sell. This will flood the market with a lot of new homes. This will create an extremely competitive market for sellers, and you might not be able to sell your home for the prices you see now. 

Right now, prices are at an all-time high in the Antelope Valley! Interest rates are still incredibly low, and the amount of inventory we have for homes is at an all-time low of 1.24! That means, if we didn’t have any new homes comes on the market, all the homes we have in inventory would be sold in about 1 month.

We know every situation is different when it comes to selling a house and what it might look like at the end of your forbearance period. It’s best if you talk to a real estate agent and a lender to see what the best option is for you.

If you’d like to connect, send me an email at mike@avwatson.com and we can find what options are best for you.