Forbearance Numbers Are Lower than Expected

Forbearance Numbers Are Lower than Expected | Simplifying The Market

Originally, some housing industry analysts were concerned that the mortgage forbearance program (which allows families to delay payments to a later date) could lead to an increase in foreclosures when forbearances end. Some even worried that we might relive the 2006-2008 housing crash all over again. Once you examine the data, however, that seems unlikely.

As reported by Odeta Kushi, Deputy Chief Economist for First American:

“Despite the federal foreclosure moratorium, there were fears that up to 30% of homeowners would require forbearance, ultimately leading to a foreclosure tsunami. Forbearance did not hit 30%, but rather peaked at 8.6% and has been steadily falling since.”

According to the most current data from Black Knight, the percentage of homes in forbearance has fallen to 7.4%. The report also gives the decrease in raw numbers:

“The overall trend of incremental improvement in the number of mortgages in active forbearance continues. According to the latest data from Black Knight’s McDash Flash Forbearance Tracker, the number of mortgages in active forbearance fell by another 71,000 over the past week, pushing the total under 4 million for the first time since early May.”

Here’s a graph showing the decline in forbearances over the last several months:Forbearance Numbers Are Lower than Expected | Simplifying The MarketThe report also explains that across the board, overall forbearance activity fell with 10% fewer new forbearance requests and nearly 40% fewer renewals.

What about potential foreclosures once forbearances end?

Kushi also addresses this question:

“There are two main reasons why this crisis is unlikely to produce a wave of foreclosures similar to the 2008 recession. First, the housing market is in a much stronger position compared with a decade ago. Accompanied by more rigorous lending standards, the household debt-to-income ratio is at a four-decade low and household equity near a three-decade high. Indeed, thus far, MBA data indicates that the majority of homeowners who took advantage of forbearance programs are either staying current on their mortgage or paying off the loan through a home sale or a refinance. Second, this service sector-driven recession is disproportionately impacting renters.”

There is one potential challenge

Today, the options available to homeowners will prevent a large spike in foreclosures. That’s good not just for those families impacted, but for the overall housing market. A recent study by Fannie Mae, however, reveals that many Americans are not aware of the options they have.

It’s imperative for potentially impacted families to better understand the mortgage relief programs available to them, for their personal housing situation and for the overall real estate market.

Bottom Line

If Americans fully understand their options and make good choices regarding those options, the current economic slowdown does not need to lead to mass foreclosures.

Powered by WPeMatico

Why Foreclosures Won’t Crush the Housing Market Next Year

Why Foreclosures Won’t Crush the Housing Market Next Year | Simplifying The Market

With the strength of the current housing market growing every day and more Americans returning to work, a faster-than-expected recovery in the housing sector is already well underway. Regardless, many are still asking the question: will we see a wave of foreclosures as a result of the current crisis? Thankfully, research shows the number of foreclosures is expected to be much lower than what this country experienced during the last recession. Here’s why.

According to Black Knight Inc., the number of those in active forbearance has been leveling-off over the past month (see graph below):Why Foreclosures Won’t Crush the Housing Market Next Year | Simplifying The MarketBlack Knight Inc. also notes, of the original 4,208,000 families granted forbearance, only 2,588,000 of these homeowners got an extension. Many homeowners have once again started to pay their mortgages, paid off their homes, or never went delinquent on their payments in the first place. They may have applied for forbearance out of precaution, but never fully acted on it (see graph below):Why Foreclosures Won’t Crush the Housing Market Next Year | Simplifying The MarketThe housing market, and homeowners, therefore, are in a much better position than many may think. Much of that has to do with the fact that today’s homeowners have more equity than most realize. According to John Burns Consulting, over 42% of homes are owned free and clear, meaning they are not tied to a mortgage. Of the remaining 58%, the average homeowner has $177,000 in equity. That number is keeping many homeowners afloat today and giving them options to avoid foreclosure.

While ATTOM Data Solutions indicates that there is a potential for the number of foreclosures to increase throughout the country, it’s important to understand why they won’t rock the housing market this time around:

“The United States faces a possible foreclosure surge over the coming months that could more than double the number of households threatened with eviction for not paying their mortgages.”

That number may sound massive, but it is actually much smaller than it seems at first glance. Today’s actual quarterly active foreclosure number is 74,860. That’s over 7.5x lower than the number of foreclosures the country saw at the peak of the housing crash in 2009. When looking at the graph below, it’s clear that even if the number of quarterly foreclosures today doubles, as ATTOM Data Solutions indicates is a possibility (not a given), they will only reach what historically-speaking is a normalized range, far below what up-ended the housing market roughly 10 years ago.Why Foreclosures Won’t Crush the Housing Market Next Year | Simplifying The MarketEquity is growing, jobs are returning, and the economy is slowly recovering, so the perfect storm for a wave of foreclosures is not realistically in the housing market forecast. As Odeta Kushi, Deputy Chief Economist for First American notes:

“Alone, economic hardship and a lack of equity are each necessary, but not sufficient to trigger a foreclosure. It is only when both conditions exist that a foreclosure becomes a likely outcome.”

While our hearts are with anyone who may end up in foreclosure as a result of this crisis, we do know that today’s homeowners have more options than they did 10 years ago. For some, it may mean selling their house and downsizing with that equity, which is a far better outcome than foreclosure.

Bottom Line

Homeowners today have many options to avoid foreclosure, and equity is surely helping to keep many afloat. Even if today’s rate of foreclosures doubles, it will still only hit a mark that is more in line with a historically normalized range, a very good sign for homeowners and the housing market.

Powered by WPeMatico

Two Reasons We Won’t See a Rush of Foreclosures This Fall

Two Reasons We Won’t See a Rush of Foreclosures This Fall | Simplifying The Market

The health crisis we face as a country has led businesses all over the nation to reduce or discontinue their services altogether. This pause in the economy has greatly impacted the workforce and as a result, many people have been laid off or furloughed. Naturally, that would lead many to believe we might see a rush of foreclosures like we saw in 2008. The market today, however, is very different from 2008.

The concern of more foreclosures based on those that are out of work is one that we need to understand fully. There are two reasons we won’t see a rush of foreclosures this fall: forbearance extension options and strong homeowner equity.

1. Forbearance Extension

Forbearance, according to the Consumer Financial Protection Bureau (CFPB), is when your mortgage servicer or lender allows you to temporarily pay your mortgage at a lower payment or pause paying your mortgage.” This is an option for those who need immediate relief. In today’s economy, the CFPB has given homeowners a way to extend their forbearance, which will greatly assist those families who need it at this critical time.

Under the CARES Act, the CFPB notes:

 “If you experience financial hardship due to the coronavirus pandemic, you have a right to request and obtain a forbearance for up to 180 days. You also have the right to request and obtain an extension for up to another 180 days (for a total of up to 360 days).” 

2. Strong Homeowner Equity

Equity is also working in favor of today’s homeowners. This savings is another reason why we won’t see substantial foreclosures in the near future. Today’s homeowners who are in forbearance actually have more equity in their homes than what the market experienced in 2008.

The Mortgage Monitor report from Black Knight indicates that of all active forbearances which are past due on their mortgage payment, 77% have at least 20% equity in their homes (See graph below):Two Reasons We Won’t See a Rush of Foreclosures This Fall | Simplifying The MarketBlack Knight notes:

“The high level of equity provides options for homeowners, policymakers, mortgage investors and servicers in helping to avoid downstream foreclosure activity and default-related losses.”

Bottom Line

Many think we may see a rush of foreclosures this fall, but the facts just don’t add up in this case. Today’s real estate market is very different from 2008 when we saw many homeowners walk away when they owed more than their homes were worth. This time, equity is stronger and plans are in place to help those affected weather the storm.

Powered by WPeMatico

3 Bedroom Home in Nutley, With Custom Kitchen!

Check Out The Amazing Kitchen On This Home in Nutley NJ

This 3 bedroom 3 bath home located in Nutley, NJ has a kitchen that even Gordon Ramsey would be envious of, located in the Yantacaw section of Nutley NJ, this homes kitchen is better than homes priced at 3 times it’s price.

Nutley NJ is only 12 miles away from NYC, this home features a deep lot great for a built in pool, In-law suite if need be, own your own Oasis for your family, like throwing large parties and having big holiday gatherings? then this home is for you, call me at 862-228-0554 for more Information or to set up a showing.

 
See More Here:
3 Bedroom Home in Nutley

Open House in Paterson NJ

Open House in Paterson NJ from 1-4pm, 270 Preakness Ave.

270 Preakness Ave Open House

Are We About to See a New Wave of Foreclosures?

Are We About to See a New Wave of Foreclosures? | Simplifying The Market

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

When the housing market was going strong in the early 2000s, homeowners gained a tremendous amount of equity in their homes. Many began to tap into that equity. Some started to use their homes as ATM machines to purchase luxury items like cars, jet-skis, and lavish vacations. When prices dipped, many found themselves in a negative equity situation (where the mortgage was greater than the value of their homes). Some just walked away, leaving the banks with no other option but to foreclose on their properties.

Today, the home equity situation in America is vastly different. From 2005-2007, homeowners cashed out $824 billion worth of home equity by refinancing. In the last three years, they cashed out only $232 billion, less than one-third of that amount. That has led to:

  • 37% of homes in America having no mortgage at all
  • Of the remaining 63%, more than 1 in 4 having over 50% equity

Even if prices dip (and most experts are not predicting that they will), most homeowners will still have vast amounts of value in their homes and will not walk away from that money.

There Will Be Help Available to Individuals and Small Businesses

The government is aware of the financial pain this virus has caused and will continue to cause. Yesterday, the Associated Press reported:

“In a memorandum, Treasury proposed two $250 billion cash infusions to individuals: A first set of checks issued starting April 6, with a second wave in mid-May. The amounts would depend on income and family size.”

The plan also recommends $300 billion for small businesses.

Bottom Line

These are not going to be easy times. However, the lessons learned from the last crisis have Americans better prepared to weather the financial storm. For those who can’t, help is on the way.

Powered by WPeMatico

Realty Executives Elite Homes Chosen To Represent The Bedford Estate

Matthew De Fede Broker/Owner of Realty Executives Has Been Chosen To Represent The Sale of The Ruth Bedford House. The Home Will Be Hitting The Market in January of 2020, To See More Photos Go Here.

Ruth Bedford Nutley

Read More About Ruth Bedford Here

Top Real Estate Broker in Northern NJ, Matthew De Fede

Matthew De Fede

​Realty Executives Elite Homes is Celebrating it’s 5th Year in Business in Northern New Jersey, Matthew De Fede Broker/Owner Says

“It feels like it has been decades since we opened our doors but in a short amount of time we have built a rather strong brand in the Nutley, Montclair Area”

​Matthew had a vision of opening up a real estate office that was run more like a Advertising Agency, something he has some experience in.

Having worked for major companies for the past 29 years he took his skills and knowledge of marketing and turned it into a growing Real Estate Brokerage in the Northern New Jersey Area and this December will mark 5 years doing just that.

Matthew says we are a digital marketing agency and our products that we sell just happen to be homes and real estate.

For more information you can reach Matthew and his team at 973-846-0065.

Boomerang Buyers: Don’t Be Afraid to Buy a Home Again!

Boomerang Buyers: Don’t Be Afraid to Buy a Home Again! | Simplifying The Market

According to CoreLogic, from 2006 to 2014 “there were 7.3 million housing foreclosures and 1.9 million short sales.” The hesitation some Americans feel after experiencing a foreclosure brings to mind the old saying: “Fool me once- shame on you. Fool me twice- shame on me.

According to the 2019 Home Buyer Report from NerdWallet,

Thirteen percent of Americans have lost a home due to a financial event such as foreclosure in the past 10 years. More than 6 in 10 of them (61%) have not bought a home since, and 20% of those who haven’t repurchased say they never plan to again.”

This makes sense. They don’t want to go through the same pain again. As a cornerstone of the American dream, nobody wants to lose homeownership. But let’s illustrate this simply: Recall learning to ride your first bike during your childhood. Did you stop riding it because you fell on the ground and scraped your knees? Or did you get back on and try again until you were able to ride without falling?

Purchasing a home is not as simple as learning to ride a bike, but the concept is the same! There are many things necessary to learn that affect the ability to get the financing needed to purchase a home. Past occurrences can determine if there is a waiting period. In other words, you need to let your knees heal before you try again!

As we’ve mentioned in the past, homeownership has many financial and non-financial benefits. Each person needs to go over the pros and cons, taking the time to figure out what is best for their family. Should they continue renting, or should they try to buy again?

The good news is that some “boomerang buyers” are getting back into the market. They’re getting back on their bike!

“Of 2.8 million former homeowners whose foreclosures, short sales or bankruptcies dropped off their credit reports from January 2016 to November 2018, 11.5% have obtained a new mortgage, according to a study by credit rating agency Experian for USA Today.”

NerdWallet’s report also mentioned:

  • 6% plan to buy a house this year.
  • 39% intend to buy over the next 3 years.
  • 58% say they will purchase within 5 years.

Bottom Line

If you lost a home due to a financial event but would like to review your options, let’s get together to help you create a plan to obtain a home in the future!

Powered by WPeMatico

Discount Brokers in Nutley, 5 Things You Need To Know When Selling in Nutley NJ

If you have come here looking for a Discount Brokerage to sell your home in Nutley STOP! and Go here!

We are not a discount Brokerage in Nutley New Jersey, We Are a FULL SERVICE REAL ESTATE MARKETING COMPANY in Nutley NJ and we do have a 99% Success Rate When Selling Your Home in Nutley New Jersey

Nutley is located 12 miles from NYC and is a great town for first time home buyers moving from NYC to NJ, Close to all Major roads as well as the New Medical School in Nutley New Jersey, and the new future home of Quest Diagnostics, The average home price is $35ok – $450k you can get a nice 3 bedroom 2 bath home in one of Nutley’s gorgeous sections. Nutley has several sections, The Washington Section, The Yantcaw Section, The Radcliffe Section, The Spring Garden Section and the Lincoln section of Nutley New Jersey. Here are some of the latest homes I have sold in Nutley recently.

5 Enclosure in Nutley New Jersey Was Sold for $539,000.00

This  home is a 4 Bedroom 2 Full Bath & 2 Half Bath Located in the Yanticaw Section of Town, This home was built in 1886 and totally renovated in 2018

SOLD BY MATTHEW DE FEDE of REALTY EXECUTIVES ELITE HOMES

To see More of This Home Click Here

5 Enclosure St Nutley NJ 07110

What Discount Brokers Won’t  Do For You

1. Photograph Your Home, You will have to pay extra for real good photos

2.Will Not Supply You With A Virtual Tour, You would also have to play for that

3. Market The Property Daily, They just put the home on the MLS

4. Will not negotiate your deal and handle home inspection issues etc.

5. Will Not Pick Up The Phone On A Sunday Night at 8pm When You Have a Question.

 

23 Taft St. in Nutley New Jersey

This home was a 3 Bedroom 1.5 Bath Home in The Lincoln Section of Nutley New Jersey

SOLD BY MATTHEW DE FEDE of REALTY EXECUTIVES ELITE HOMES

To see More of This Home Click Here

23 Taft in Nutley New Jersey

Living In Nutley New Jersey

 

Franklin Avenue & High Street

Franklin Avenue & High Street

Established in the late 17th century by Dutch and English settlers on the west bank of the Passaic River, Nutley has retained its small town atmosphere through the centuries. Competently governed by a board of commissioners and home to one of the nation’s premier pharmaceutical companies, Hoffmann-La Roche, it is a stable and progressive community, whose residents voluntarily staff the emergency and rescue squad and most of the fire department.

Through the years, the town has had its share of notable residents, including Annie Oakley, Martha Stewart, well-known artists, a countess, a Swiss baron, a baroness and members of Jackie Kennedy’s family. It is basically a residential community and boasts a park in every neighborhood. The New York skyline is visible from any hill in town and Manhattan is just a short bus ride away. An excellent school system is maintained at a cost far lower than surrounding communities and major colleges and universities are within easy commuting distance.

The Nutley Oval

The Nutley Oval

Perhaps Nutley’s charm and appeal is most evident by the fact that families stay in town from generation to generation and grandchildren and great grandchildren walk the same streets their ancestors trod. Nutley is conveniently located just eleven miles straight out from NYC. The township is comfortably saddled between the Passaic River, Route 3, the GSP and the township of Belleville to the south.

NUTLEY TOWNSHIP WEBSITES
NutleyNJ (Official Township Web Site.)
NJ Hometown
www.Nutleynet.com
www.oldnutley.org
www.nutleyschools.org/
www.nutleytown.com/
www.nj.com/nutley/
www.northjersey.com/towns/Nutley.html
List of Civic Members
Check out these websites for statistics about Nutley: www.zip-codes.com and www.yahoo/neighborhoods.com

IMPORTANT TELEPHONE NUMBERS AND ADDRESSES
• Town Hall: 1 Kennedy Drive, Nutley, NJ 07110 – Phone: 973-284-4951 / Fax: 973-284-4901 – Website
• Emergency and Rescue Squad: 119 Chestnut Street, Nutley, NJ 07110 – Phone: 973-667-7487*
• Police and Fire Departments: 228 Chestnut Street, Nutley, NJ 07110 – Phone: 973-284-4940*
• Board of Education: 375 Bloomfield Avenue, Nutley, NJ 07110 – Phone: 973-661-3500 – Website
• Nutley Free Public Library: 93 Booth Drive, Nutley, NJ 07110 – Phone: 973-667-0405 – Website
*In the event of an emergency, dial 911.

Yantacaw Park

Yantacaw Park

Kingsland Manor

Kingsland Manor

The Black Prince Distilleries

The Black Prince Distilleries

Show Buttons
Share On Facebook
Share On Twitter
Share On Google Plus
Share On Linkedin
Share On Pinterest
Share On Youtube
Share On Reddit
Share On Stumbleupon
Contact us
Hide Buttons