390,000 FLORIDA HOMEOWNERS DIDN'T MAKE THEIR MORTGAGE PAYMENT IN MAY!
Gov. Ron DeSantis signed an extension of his prior order preventing foreclosures until October 1st. Once the moratorium is lifted, the volume of listings will increase adding pricing pressures to the market.
- PRIVATELY HELD LOANS MAY THE FIRST TO BE FORECLOSED
- CARES ACT FOREBEARANCE HAS A DIFFERENT TIMEFRAME
- LANDLORDS WAITING TO SELL
- FORECLOSURE FILINGS EXPECTED TO BE SIGNIFICANT
- IF YOU WANT TO SELL, DO IT NOW!
- CARES ACT GOVERNMENT PAGE LINKS
- RELATED ARTICLE:
How a Real Estate Market Downturn will Develop
PRIVATELY HELD LOANS MAY BE THE FIRST TO BE FORECLOSED
Privately held loans are not eligible for forbearance relief under the CARES Act but, Florida’s moratorium extension ordered and signed by Gov. Ron DeSantis now prevents foreclosures until after October 1st.
(A non-federally backed loan may still be eligible for Forebearance so if in need, discuss with your lender.)
CARES ACT FOREBEARANCE HAS A DIFFERENT TIMEFRAME
The Florida moratorium is different than the CARES Act which applies to Federally backed mortgages and runs through December 31, 2020. It may also get extended but if you need a forebearance under the CARES Act,
you need to apply within the
time alloted.
The CARES Act also includes a moratorium on forelosures untl 12-31-2020 which is separate from the forebearance option.
The Cares Act provides mortgage payment forbearance for up to 12 months for all federally insured mortgages. About two-thirds of all mortgages are federally insured.
A link to the governments page appears at the bottom of this page.
LANDLORDS WAITING TO SELL
There’s also a moratorium on evictions. Many renters stopped paying. Owners still need to make payments for whatever obligations they have for the property.
Many landlords are taking a loss. There is relief on the way, but a good percentage of passive landlords have had enough stress and would like to sell.
Their properties are difficult to sell to another investor while a non-paying tenant occupies the house.
Once these landlords are able to evict their non-paying tenants, many will put those properties on the market adding to a likely large volume of new inventory.
FORECLOSURE FILINGS ARE EXPECTED TO BE SIGNIFICANT
Bank lawyers are preparing to file a large number of new cases and continue previously filed cases when the moratorium is lifted. A slew of foreclosure filings are expected.
Pricing pressures are likely coming our way from owners who will try to sell before they are foreclosed and
from foreclosures as cases are won, some of which were stopped when the moratorium went into effect.
IF YOU WANT TO SELL, DO IT NOW
Prices are holding in Florida because fewer houses are on the market. As of 09-09-2020, one area we review shows listed Single Family Homes are down 30%. The picture below shows July was down 25%. Once the volume of listed houses increases significantly, prices will drop.
RELATED ARTICLE
HOW A REAL ESTATE MARKET DOWNTURN WILL DEVELOP
CARES ACT FOREBEARANCE GOVERNMENT PAGES:
1) INFO ON RELIEF / FOREBEARANCE - GOVERNMENT PAGE
2) INFO ON REQUESTING FOREBEARANCE - GOVERNMENT PAGE