It’s an easy assumption. If people can’t pay their mortgage, they will have to foreclose.
And while under ordinary circumstances, that is definitely true. But these are not ordinary circumstances.
The CARES Act enacted for coronavirus relief allows forbearance up to one year for all federally or GSE-backed mortgages including FHA, VA, USDA, Fannie Mae, Freddie Mac. For homeowners who do not have a government-baked mortgage, most private lenders are also offering extensions on forbearance forgiveness.
No one wants to see what happened in 2008 to happen again.
