patrick.net

Not me, make my last payment next month. The Insurance company just sent us a letter and said they weren't renewing our insurance coverage this year. Which is perfect I'll get it back from escrow.

All of this over an overreaction to a disease.

It’s too bad.

People lost their homes in 2009 because they bought hugely-over-valued homes with little money down, the home values plummeted, and the homeowners decided the value of the home was considerably less than the remaining loan balance and so just strategically defaulted.

The current situation is different. Home prices haven't (yet) crashed 30% or more. So homeowners are generally still above water (home value worth more than remaining loan amount). Why would a bank foreclose right now on someone when that the client is likely to resume paying (with extra penalties) when the jobs return. Banks will foreclose only if the home value is nearing the remaining loan balance.

As for renters: Landlords aren't going to kick out renters if they have nobody to fill the vacancy. Why would a landlord kick out a renter and then leave the place vacant. Better to keep the renter and hope to resume collecting rent when the covid is over. Maybe they could even collect some past-due rent. In fact, wait until the economy pick up and you could get a new renter; use that as leverage to have the current renter pay back rent.

clambo says

All of this over an overreaction to a disease.

It’s too bad.

Crash the economy before Biden takes over. Any improvement will make President Biden look like a hero.

SunnyvaleCA says

Banks will foreclose only if the home value is nearing the remaining loan balance.

Will see how economy fares. It could drag down home prices by at least 25%.

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