Almost 2 million homeowners are still in mortgage forbearance as the national foreclosure moratorium nears its end on July 31. While that may be cause for alarm to borrowers still behind on payments, industry experts say they are optimistic that a wave of foreclosure is unlikely to come.

“Our economy is picking up,” says Marina Walsh, VP of Industry Analysis for the Mortgage Bankers Association’s (MBA) Research and Economics Department. “There is an improving job market right now and a robust housing market. We’re not in a situation we were in ten years ago with the Great Recession where homes were substantially underwater nationwide.”

While there are still homeowners that are financially distressed from the pandemic, Walsh says the MBA has seen signs of a rebound, particularly in loans in forbearance. According to the MBA’s latest survey on July 12, the total number of loans in forbearance dropped by two basis points, continuing a 19-week decline.

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