Will Foreclosures Surge After Rental and Foreclosure Moratorium Expire Across the U.S.?

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Nobody wants to deal with a foreclosure, especially after months of struggling with the coronavirus pandemic and unable to pay your mortgage on time owing to lost wages. As a homeowner, you’re informed about the intention of your lender to foreclose on your house. The lender can go about enrolling the foreclosure process in 2 ways: judicial foreclosure or non-judicial foreclosure, but as a renter, all you might get is a 3-day pay or quit notice.

In a judicial foreclosure, after the lender forwards a letter of intent, and the extra mortgage payment is still not received, the foreclosure process can begin. This process can take several months.

A nonjudicial foreclosure does not require the lender to file a lawsuit. It can be more expensive, because it requires you, the homeowner to file your lawsuit against the lender to protect your interest. Anyway, it is best to hire an experienced real estate attorney to guide you through the foreclosure process.

Statewide COVID-19 Tenant and Landlord Protection Legislation

Renters across the United States have been given COVID-19 rental assistance, but the problem with that there are more families in need than there are funds to help renters from eviction. Not to mention the landlords that want to sell the property due to the economy

“All across the United States Governors have been signing rental assistance bills to help apartment renters, but that’s only a band-aid, it doesn’t help the real problem which is people need jobs that will last. For example, in Los Angeles, California Governor Newsom signed a statewide rental and landlord legislation that extends when tenants can’t pay their rent,” says Timothy T. Tory, a broker for a private firm in Los Angeles, California.

Covid-19 State Foreclosure Moratoriums

A real estate lawyer is well competent in foreclosure law and can explain all possible solutions to slow or prevent you from losing your home. Contrary to popular belief, lenders are not eager to throw you out of your home. They would preferably not have to deal with the real estate market by putting your house for sale.

Therefore, a real estate attorney is an experienced negotiator and may send a letter to the lender on your behalf. In return, lenders are more likely to respond promptly if a lawyer is involved. The fast reaction can also contribute to the fact that real estate attorneys have built relationships with most loss mitigation departments of lenders, and they know who exactly to contact.

Some of the possible solutions that can negotiate a real estate attorney on your behalf include repair, mortgage modification, refinancing, short sale, deed in place, and bankruptcy.

Missing Payments?

If you restore your mortgage, you should be able to pay out all your missed payments, plus interest expenses after you receive the message. Different states have different grace periods in which you can legally repair your loan. If you cannot make payments during that grace period, then mortgage modification may help you. Mortgage modification is when the initial contract is changed in the loan, usually because of the inability of a house to pay for debt negotiation.

However, if you do not plan to stay in your home, then a short sale is the option that most homeowners tend to choose. Along with a lawyer, you will want to work with a broker who can get your home sold relatively quickly. If a short sale is not working, you have the option deed in lieu or bankruptcy.

Deed in lieu occurs when you transfer all rights of your property to the lender, and bankruptcy wipes out some or all the blame. However, these have a significant impact on your credit rating. In any case, a lawyer will be able to tell you which options are best for your unique situation.

ECONOMY: How is the stock market making gains despite the current circumstances?

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It’s still a bear market, I don’t care what the financial media says.

Bear markets take time. They don’t slice stock prices in half in just a few days.

The recent crash was the fastest crash from all time highs, ever. Think about that – all the other big, famous crashes took LONGER than this crash is taking.

A few facts to keep in mind about bear markets:

  • They usually last 1-2 years.

  • The market doesn’t go down in a straight line. There are LOTS of bear market rallies on the way down.

  • The biggest single day gains historically have occurred during bear markets, not bull markets.

  • Bear market rallies tend to be sharp and painful for anyone who bought puts.

  • Bear market rallies can last for months at a time.

  • The Fed is indeed distorting the market, but if foreign markets and currencies suddenly and expectedly become more attractive than the US, the Fed will not be able to stop the flow of money out of the market.

  • The bottom is usually in once the market is crashing lower on days with low volume. That represents capitulation by the bulls. We haven’t seen that yet.

The best play here is NOT to buy puts; it’s to stay in cash, and dollar-cost-average into the market over a 1 year timeframe once SPX hits 1900 (its 15-year inflation-adjusted moving average, which it touches once or twice every 20 years or so).

It’s not necessarily a bunch of buy-the-dippers. All it requires is more bids than asks. With so many people having their 401k etc. on auto-invest, Life Cycle Funds and so on, there is built-in continuous arrivals on the buy side. And with everyone “knowing” that passive indexing is the only way to go, the bids will be distributed numerically according to current marketplace cap, accumulating numeric drift and dispersion (the big get bigger). People can try to fade this dynamic (“value”) but they will have to be very, very patient.