Issue #55 - Brandon Cobb, The House Buyin Guys | Page 50

in the 2008 to 2012 years . As such , any distressed homeowners who need to sell should be able to do it rather quickly due to the strong buyer demand and record low mortgage rates .
Homeowners , Tenants , and the CARES Act
Photo by Olya Kobruseva from Pexels

Between 2006 and 2014 during the

depths of the Credit Crisis , there were 10 million Americans who lost their home to foreclosure over this 8­year span . Within just a few months in 2020 ( March to May ), we ' ve seen almost 50 % of that 10 million foreclosure number with at least 4.7 million mortgages delinquencies . For most Americans , the vast majority of their family ' s overall net worth is tied directly to the equity in their home rather than in any stocks or other investments .
The good news is that national existing home sales climbed an all­time record + 20.7 % month­over­month increase between May and June 2020 partly due to fixed mortgage rates repeatedly reaching all­time record lows . In spite of record unemployment claims filings , home prices are still at or near all­time record highs in most major metropolitan regions .
In spite of one of the most chaotic years ever in world history , national home equity grew $ 1 trillion in value due to the combination of historic all­time low 30­year fixed rates and unusually low home listing inventory . For example , there were 1.42 million existing homes on the market nationwide at the end of October 2020 , which was a 19.8 % drop compared with one year earlier . Some analysts claim that the median home price nationwide increased by a 16 % year­overyear growth during the same October 2019 to October 2020 time range . In many metropolitan regions , listed homes are selling within one to two weeks .
The primary difference between now and the last negative economic time period is that more homeowners today have much more equity in their homes than back
Back on March 27 , 2020 , the CARES ( Coronavirus Aid , Relief , and Economic Security Act ) was passed by Congress as a response to the worsening US and global economy due to the fallout from the ongoing virus pandemic designation . Subsequent to the passage of the CARES Act , governors in states like California and elsewhere signed mandates or legal orders that attempted to prohibit lenders from foreclosure on delinquent homeowners and landlords from evicting tenants through the end of December 2020 or January 2021 ( dates subject to change ).
Additionally , the CDC ( Center for Disease Control ) issued their own guidelines that referenced the possibility of civil fines and / or criminal prosecutions for any landlord who attempted to evict a delinquent tenant before the end of December 2020 partly due to claims that it may increase potential health risks for the general public . In US history , this may be the very first time that the CDC has claimed authority to directly affect landlords and tenants . In recent times , these foreclosure or eviction moratoriums have been extended to January 2021 or beyond . At a later date , these moratoriums may continue to be extended , but few people are fairly certain at this point .
Risks and Financial Opportunities
● Adverse Market Fees : As of December 1st , 2020 , the largest secondary market investors , Fannie Mae and Freddie Mac , are scheduled to assess a 0.50 % “ adverse market fee ” to at least all refinance ( and possibly purchase ) loans that are designated as “ conforming ” fixed mortgage rates . Generally , these are some of the lowest 30­year and 15­year fixed mortgage rates in the nation for the most creditworthy borrowers with usually very solid FICO credit scores . This market fee adjustment may increase the overall 30­year fixed rate by anywhere between . 125 % and . 25 %, depending upon the lender .