What happens when your house is in foreclosure – Considering all that is going on right now in the world, it may seem like a monumental challenge to sell your Riverside house. Let’s see what the end of the foreclosure moratorium would mean for home sellers in Riverside to help you understand the ways factors beyond your control will affect the selling of your Riverside home.
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What Is the Foreclosure Moratorium?
A temporary halt on both new and existing real estate foreclosures on single-family homes financed by mortgages guaranteed by the Federal Housing Administration was placed in place by the United States federal government on March 18, 2020.
The order is part of the Coronavirus Relief and Economic Protection Act, or CARES Act, and was explicitly intended to provide relief due to continuing complications surrounding the national Covid-19 outbreak to individuals and families under heightened financial stress. Originally expected to expire earlier in 2020, the moratorium on foreclosure was extended until 31 December 2020.
It is important to remember that the foreclosure moratorium notes that this should continue to be done by any person willing to continue paying their mortgage or rent, or at least to the best of their capacity. The Federal Housing Administration also strongly encourages troubled tenants and residents to have a good-faith debate with their lender or landlord clearly and thoroughly to hammer out the best payment arrangement to move forward.
How Is the Market Affected?
With the foreclosure moratorium set to expire at the end of the year, due to the potential for market turmoil and the uncertainty that could result, many existing home owners are looking to complete some transactions prior to the expiration.
There will be a significant rise in mortgage court filings after the moratorium is permitted to expire. There has recently been a rise in foreclosure court filings in some states for homes not protected by the moratorium, but this may not be an indication of a more pervasive potential pattern.
In the event that the moratorium ends and foreclosures are rapidly rising, you can foresee a real estate market dominated by mortgage-owned Riverside properties for sale. In these situations, mortgage firms are likely to want to reduce their property losses as much as possible, while still discharging the assets as soon as possible.
In this case, the possible risk to your Riverside home sales is if the mortgage firms are only trying to cut rates, dump the properties to suck out whatever value they can by reducing their losses, and leave the local property values in a decline.
As house prices, land values, and even individual property taxes are ultimately partly dictated by the recent sales prices of comparable homes in your local area, a situation like this will likely have long-term local implications.
Bear in mind, however, that it needs to be permitted to expire in order for the moratorium to expire, and it is unlikely that a federal government entity will knowingly allow the above set of conditions to run their course.
What Can I Do?
As an individual Riverside home seller in a much larger market, what happens when your house is in foreclosure, when trying to sell your Riverside property, the best thing you can do is what you should always do: take excellent care of the property, price it fairly, listen to your agent ‘s advice, do your best to accommodate showings, and be willing to give and take both during negotiations.
Owing to conditions unparalleled in recent history, the mortgage moratorium is now in place to support those who are in distress, and those in control are responsible for ensuring as much normalcy for those people as they ride out this struggle. Remember the worthwhile property you put to the market, and how it can change the lives of those who show interest in it.
Help Selling a Home in Riverside
If you need assistance selling a home or knowing the moratorium on foreclosure, contact us today at (951) 355-7115!