Albuquerque forbearance updates

(Transcript Snippet): “Tego: It has to do with, with what’s going on with the forbearance world. Right. So if you’re not familiar with it, when the pandemic started there were a lot of these programs that came into place to help people with mortgages

Tracy:

Couldn’t afford to pay them, could

Tego:

Couldn’t make their home mortgage payments enter into a forbearance program, meaning they’re, they’re basically putting their mortgage payments on hold. And, and of course, you know, now we’re, we’re past a year out. And and so there’s been a lot of them that expired because, you know, I think initially it was what six months, or maybe it was three months and it extended and, and a lot of them, you know, are up on a year now. And so, so there has been a lot of explorations in, in what what’s happened is as they’ve expired, meaning the plan most of these people have come off the forbearance plan,

Tracy:

Right? When you look at the numbers, the decline was pretty significant of people in the program. Okay. Yeah. So people

Tego:

Exiting the program. A lot of those people came, you know, did a workout plan with their, their mortgage per, you know, their mortgage servicers. We call it and meaning like, okay, we’re going to, you know, set up some sort of repayment plan so you can get back on it. Some people didn’t, and that’s a really small number. And then some people extended again to that may, that may not have so, but, but the, the point is it’s about half, I think from a year ago, shoot, I saw it earlier and I read the data on it, but substantially less number of people on those forbearance plans. And every month it keeps declining and the point is, it’s going in the right direction. It’s not looking like we’re going to have a flood of foreclosures for, you know, people that, that have gone into foreclosure.

Tracy:

And typically what we’ve seen Tego for people that have come out of a forbearance program that maybe didn’t pay their monthly mortgage for a year or some number of months during that year is a lot of times they took that amount that they should have been paying. And the lender put that at the back end of their loan. So it’s not like now they owe 10 months or 12 months of mortgage. Right. They just added it onto the end of the loan. So now they’ve got a 30 or 31 year loan instead of a 30 year mortgage. Right. So it, th the, you

Tego:

Know, again, the takeaway is it’s positive news for, for that situation. I know there was some really big, scary numbers, you know, last year on the number of people that weren’t paying their mortgages, but every month it gets better and better.

Tracy:

And we know a couple people that had put their house in forbearance, they were not able to ironically we know a nurse who got basically furloughed laid off during the beginning of the pandemic, because the type of work that she was in was not COVID related. Yeah. Because right. I’m going

Tego:

To go, I’m going to go a little off script here. Yes. Because a lot of people working in hospitals lost work because nobody was going to the hospitals other than for COVID

Tracy:

Right. There was no elective surgeries. There was no, yeah. Elective, as in, I’m not talking about elective, I want to get a facelift. I’m talking about dental surgery and other things that could be put off. Right. I have a bad knee, but you can’t get it fixed right now, type surgery. So anyway, so it’s good news. People are coming out of forbearance. Most people are able to continue on the path and

Tego:

Just put this out there. If you are, if you know somebody that, that is in a situation where they haven’t been able to, you know, come out of the forbearance plan or they’re delinquent and they need, you know, they just need advice. They just need to have a private conversation with somebody about, you know, what can I do, right. I, I, I can’t keep making the payments. I can’t, you know do a workout with the mortgage company. I just need to move on from this house. The good news for those people is, you know, we’ve had all this equity

Tego:

Gain, right? So a lot of people, yeah. I mean, a lot

Tego:

Of people may be in an equity position or what we call an equity sale position where they can just sell the house, pay off the underlying mortgage and, and move on without having that hit on their record.