The Mortgage Bankers Association reported that the forbearance rate fell to 1.3% in January from 1.41% in December. This translated into approximately 650,000 homeowners who were in forbearance as of January 31st.
This metric has only been calculated by the MBA for approximately 2 years, but at this point, it represents the lowest level of forbearance since its creation. According to the MBA survey, 94.91% of all mortgages work are current as of January, which was up from December by .06 %. The good news is that the number of mortgages in forbearance still continue to be at record low rates. There was some concern at the beginning of the pandemic that many homeowners would end up losing their jobs and consequently be unable to make their mortgage payments. But this does not seem to have been the case, thankfully. Right now, due to the strong demand for homes, and the shortage of inventory, the possibility of a large number of homes going into default may have been mitigated by giving those homeowners an opportunity to put their homes on the market and downsize to a more affordable monthly payment.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.