Will the Coronavirus Outbreak Lead to the Next Foreclosure Crisis?
Under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, homeowners with a federally backed mortgage loan who’re experiencing a financial hardship, which is due directly or indirectly to COVID-19, can get a forbearance—a suspension or reduction in mortgage payments—for up to 360 days, almost a year. Homeowners have been quickly taking advantage of the ability to get this suspension, and forbearance requests grew by 1,896% between March 16 and March 30, 2020. But what happens when those forbearances…