Nothing Lasts Forever!

By: Bill Dolan, CMB, AMP

With COVID-19, we continue to see a moratorium on both evictions as well as foreclosures. However, these postponements will not last forever and many will continue to face hardship in the months ahead.

In all likelihood, mortgage lenders could very well see a surge of default within their mortgage portfolios as delinquencies (the 90-day delinquent category nationally has shown a recent uptick) could lead to a serious foreclosure crisis.

Even with the help and assistance that some homeowners have received, not everybody will be able to dig out of the hole – keep in mind that some borrowers were already delinquent and behind prior to the pandemic and have fallen even further behind while others suffered other types of financial issues making it extremely difficult to catch up.

Most industry experts predict that foreclosures will have some type of impact on the real estate market in 2021 and it could continue into the beginning of 2022. The numbers coming out of forbearance will tell the story. If homeowners can complete the forbearance program and come out successfully, foreclosure numbers could remain low. But for those homeowners who are unable to get back to making regular monthly mortgage payments, foreclosure could become the only option. The next several months will be rather telling.

If you are in need of assistance with your delinquent servicing portfolio, please feel free to reach out and contact Bill Dolan at (617) 694-2617 to discuss just how SCA can assist you in developing a custom program with our 3rd party vendor to address delinquency and default administration services. For these and other mortgage banking services offered by SCA, please refer to our website at: www.scapartnering.com