You would think with all the talk of moratoriums, eviction and foreclosure that once they're lifted, you'd have a wave of foreclosures
Mccauley. Tranquillo not quite, let's
Talk about it. We're going to be talking about foreclosures when they're going to be coming and they're going to be coming and its impact on the real estate market. Right now, I'm Anant Deoras "AD" with exp Realty and through my leaving Chicago YouTube channel, I provide timely content
Specifically for homeowners. And so today's topic is foreclosures and kind of the impact to the real estate market. Before we talk about the foreclosures, I also want to kind of have a point of clarification here between of course, the eviction moratorium and the foreclosure moratorium. So as it stands right now, you know, Biden, didn't technically for all properties that are in foreclosure extend that moratorium. It was done at the governmental agency level. So F H F A a will say that fast, about 10 times through their Fanny and Freddie enterprises did extend the Fort for, excuse me, the foreclosure moratorium. That's a lot of words there through September 30th, it was expiring on the 31st of July, in addition, F H a the federal housing administration for their FHA loans also extended that moratorium. So any of those, all three of those types of enterprises account for roughly about 60 to 70% of all loans on the market.
So they, all of those were extended through September. So however, now there are still actually filing. So that's different from evictions, right? Cause technically up into this point, even though you could be going through, it's a judicial process, particularly in Illinois and many other states, they have to file the banks. If they're going to foreclose on you, they have to do a filing. And of course that could be extended. And then of course in that time you have a right to stay in your home. So actually foreclosures those filings were 13,000 based upon the information I'm providing, you can see an overlay here of SFI Atom solutions, a little over 13,000. It is interesting that I mentioned that bad Illinois was number three on that list with, out of over 5 million homes, 905 were in foreclosure. So not the best of news, right? However, again, that more trauma has been extended. So those borrowers can stay at least through September, but we're going to see what's going to happen beyond that as anyone's guess. So that's kind of that difference between, you know, the eviction moratorium and the foreclosure moratorium. Those borrowers are still protected if you have that type of loan, if you don't and if you're not in the 60 to 70%, you're in that 30%,
You may be proceeding
With foreclosure proceedings, unfortunately. So that's that kind of difference. So 13,000 does seem like a kind of a big number. And of course it is unfortunate if you're one of those persons, particularly here in Illinois of those 905 that are going through foreclosure proceedings, but there is that silver lining, as you've probably heard, right? We've had an inventory shortage. I'm actually going to be talking about for my local Lakeview community and for the Chicago market, I may be doing a couple of market updates. And so that should be coming up in the next couple of weeks, but actually there was some numbers crunched by core logic. They're an Adelin analytics firm. They, they look at the housing market and from the first quarter of 2020, you're going to be seeing some, some images coming over for ease of use for, to, to visually see for the first quarter of 2020 through the first quarter of 2021, there was an average net equity increase of just over 33 K for homeowners that had a mortgage.
And also they did, they dive in the numbers deeper. And in may, this past may for people that are actually in forbearance for Barron's for quick refresher, right, is a freeze on your payments. You've been had that opportunity. If you feel that you're not going to be able to pay, you could look into forbearance before you do that though, of course, reach out to me first to kind of look at your options. But people that are in forbearance had 88 K now, of course, that does exclude any miss payments. So of course that 88 K will eventually reduce once you come out of forbearance. So that's the whole thing is you have options. You don't necessarily have to Mr and Mrs. Homeowner go through four barons excuse me, you can go through forbearance. And if you have two, you do have a lot of equity.
You can actually sell your home and pull that equity out. So you can home can foreclose versus what happened in 2007, run-up 2007, 2008, where the bottom just dropped. There was a house of cards and all those values just sunk. We have had so much price appreciation throughout many markets, even in Chicago, relatively lag, but because of that appreciation, you actually have equity. So it is foreclosure is I guess a four letter word, but with all that equity, as I just mentioned from CoreLogic, that is a good news. So you have that option to sell, or if you really like your school district, you have nowhere to go, go ahead and go through that foreclosure proceedings. You don't get that. You get that black mark and I can connect you with my lenders. You may have to rent, right?
You may not going to immediately be able to buy, but it really ends up being a
Personal decision, as I've always said, life decisions. So that equity is fantastic. So yes, there are going to be those foreclosures, but you're asking you not what is going to happen now. Where's that wave coming. Is there going to be a quote unquote wave? So you go, I don't understand what the foreclosures, it's a filing, it's a judicial process and they're not some quick fix. There's a whole year's worth, right? Yeah, because we've had these moratoriums from different states and they're not all immediately going to go. A percentage of those right. Are going to foreclose and other percentage are they're going to be sold. And those homeowners that I just mentioned just now previously in the previous segment, you're going to pull out some equity from there, right? They're not all going to happen. It's not going to be a wave. So you're going to have a certain percentage. We don't know the exact percentage, right? Cause we don't know if that moratorium is going to be extended beyond September 30th, but let's say hypothetically after September 30th, right? In that last quarter, you're going to have a percentage coming on there. That could cause a slight softening. But you know, the national association of realtors had the, the average price, 363 K a value. So that's the average price is phenomenal and oh, by the way, right, we have an inventory shortage. So also an which I belong to the national association of realtors said we would need 5.5 million
In units every year for 10 years. So, you know, it's, even if they come and they're going to come in small spurts, we
Can absorb it because we've had such a shortage. So I hope you found value in this video. I'm Anant Deoras "AD" with exp Realty. Any questions that I'll actually go ahead and leave comments. Cause I know if you have that question, other viewers that watch this video have a question, or of course you can reach out to me. All my contact information is below. This has been foreclosures and its impact on the real estate market until next time have a wonderful day.