US Record Home Equity

AlaskaHunter

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Jan 20, 2017
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interior Alaska
A Harvard report recently came out showing a record $20 trillion in home equity.
That is substantial.....equity was half that in 2010, while mortgage debt has been stable since 2013 at $10 trillion.

With home mortgage rates at ~3%, building supplies are record high costs,
and folks learning to work from home, no wonder the price of houses is way up in many locations in the US.
 

AlaskaHunter

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Jan 20, 2017
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interior Alaska
Apparently there are over 2 million home mortgages that are at least 3 months behind in payments.
With a moratorium on mortgage defaults and an record low supply of homes, demand and prices are high.

But what will happen when the moratorium on mortgage defaults expires
and if over a million homes enter the market?
 

elkmagnet

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Jul 14, 2011
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3,768
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Hodale, Idaho
Apparently there are over 2 million home mortgages that are at least 3 months behind in payments.
With a moratorium on mortgage defaults and an record low supply of homes, demand and prices are high.

But what will happen when the moratorium on mortgage defaults expires
and if over a million homes enter the market?
A valid concern but the Lenders desire to avoid a collapse in value will hopefully motivate them to follow the guidelines provided. FYI the date of expiration I see was March 31, 2021


Post forbearance options

Upon completion of the forbearance, the lender shall work with the borrower to determine if they can resume making regular payments and, if so, either offer an affordable repayment plan or term extension to defer any missed payments to the end of the loan. If the borrower is unable to resume making regular payments, the lender should evaluate the borrower for all available loss mitigation options outlined in HB-1-3555. The special relief measured that are outlined in Chapter 18 Section 5 “Assistance in Natural Disasters” will apply. These options include Term Extensions, Capitalization and Term Extensions, and a Mortgage Recovery Advance.
 

gouch

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Jan 29, 2019
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458
Location
SW Oregon
Built 2+years ago and have at least 100%. Feels good but is likely to ebb and flow
It will indeed ebb and flow. It is starting to feel like people are falling into the same trap they fell into before the "Great Recession." Thinking it doesn't matter how much they pay for a property because the value will just keep going up. My number two daughter and her then boy friend, now husband, fell into that trap buying a home and an investment property with loans that had big balloon payments. They just knew that by the time the balloons came do they would have plenty of equity to re-finance. I told her that at least she was young so starting over was no big deal. They lost both properties and went through bankruptcy but they learned a lot and are doing great now. The big difference now is that with the low interest rates and mostly fixed rate loans people may not loose their homes even if they loose the value.
 
Joined
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Everything is talked about here. Get used to it. mtmuley
 

mtmuley

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montana
Your point? mtmuley
 

Dsnow9

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Oct 29, 2019
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Colorado
Yeah absolutely... it’s a great market if your selling and moving out of state.
Exactly, in 7 years I’m approaching 250%. Dang, just checked and neighbors bought in January and theirs has gone up almost 10% since then. Only option to upgrade though is to leave the state
 

jeremys4

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Jul 26, 2013
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Location
Reno,NV
Exactly, in 7 years I’m approaching 250%. Dang, just checked and neighbors bought in January and theirs has gone up almost 10% since then. Only option to upgrade though is to leave the state
Right I owe less than 90,000 on at least 450,000 not moving anytime soon.
 

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