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What happened with forbearance?

Forbearance was a huge topic 2 years ago, but what happened to it? Did it actually help homeowners or has it put all of us in a bad situation?

Two years ago forbearance was used as a tool to help homeowners with their mortgage, and it caused a lot of unease concerning long term effects.

You want the good news? The numbers concerning forbearance look great! About 4.2 million people used forbearance when the programs rolled out. We are now down to only 690,000 loans still in forbearance. That means 92% of those in forbearance have since come out of it.

Whether they went through modification or paid it back already, the majority of people are through this bump in their road. The following chart shows how they did it.

For those who have not found a solution yet, there are still a number of options to resolve the situation.

The big take away here is that because of the number of people still in these situations and the number of options available the experts believe that forbearance will not create a bubble or a major downturn in the market.

If you have any other questions about the market, give me a shout. My name is Chase Gallimore and I want to be your go to guy when it comes to real estate in the Shoals.

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