With the economy languishing for the past few months, many feared that an absolute wave of foreclosures was coming. This happened the last time that there was a recession, after all, and it felt like the same thing could just repeat itself a bit over 10 years later.
After all, many people have lost their jobs or seen their incomes decrease. They may have taken out mortgages that made sense and were very affordable at the time, but a similar economic situation derailed those plans. How bad is it going to be?
There is some good news: Some leading experts now think that the predictions about these upcoming foreclosures were more dismal than the reality. They believe that “foreclosures won’t be as bad as feared,” per American Banker.
The reason for this change in thinking is that the numbers, which rose dramatically over the past few months, seem to be leveling off. If that continues, the spike may not be quite as high as people initially thought.
One thing that throws a wrench into the gears, though, is that many industries are still struggling — and jobs are not secure. More people may yet lose their regular sources of income. It is unclear if that will eventually lead to a second spike in foreclosures. Could it be that some people are simply skating by on their savings right now, but they’ll have to face foreclosure when those run out? Issues like that are a bit harder to predict, and they probably depend on how long the current economic situation lasts.
What is clear is that many people will face foreclosure through no fault of their own. They must know what options they have for financial relief, whether that’s some form of bankruptcy or another solution.