Gold Country CA Real Estate Blog and News

With all of the havoc being caused by COVID-19, many are concerned we may see a new wave of foreclosures. Restaurants, airlines, hotels, and many other industries are furloughing workers or dramatically cutting their hours. Without a job, many homeowners are wondering how they'll be able to afford their mortgage payments.

In spite of this, there are actually many reasons we won't see a surge in the number of foreclosures like we did during the housing crash over ten years ago. Here are just a few of those reasons:

The Government Learned its Lesson the Last Time

During the previous housing crash, the government was slow to recognize the challenges homeowners were having and waited too long to grant relief. Today, action is being taken swiftly. Just this week:

• The Federal Housing Administration indicated it is enacting an immediate foreclosure and eviction moratorium for single family homeowners with FHA-insured mortgages for the next 60 days.
• The Federal Housing Finance Agency announced it is directing Fannie Mae and Freddie Mac to suspend foreclosures and evictions for at least 60 days.

Homeowners Learned their Lesson the Last Time