Mortgage Forbearance: A Helpful Option for Homeowners Facing Challenges

Let’s face it – life can throw some curveballs. Whether it’s a job loss, unexpected bills, or a natural disaster, financial struggles can happen to anyone. But here’s the good news. If you’re a homeowner feeling the squeeze, there’s a lifeline that many people don’t realize is still available: mortgage forbearance. What Is Mortgage Forbearance? As Bankrate explains: “Mortgage forbearance is an option that allows borrowers to pause or lower their mortgage payments while dealing with a short-term crisis, such as a job loss, illness or other financial setback . . . When you can’t afford to pay your mortgage, forbearance gives you a chance to sort out your finances and get back on track.” A common misconception is that forbearance was only accessible during the COVID-19 pandemic. While it did play a significant role in helping homeowners through that crisis, what many people don’t know is that forbearance is still a tool to support borrowers in times of need. Today, it remains a vital option to help homeowners in certain circumstances avoid delinquency and, ultimately, foreclosure. The Current State of Mortgage Forbearance Forbearance continues to serve as a valuable safety net for homeowners facing temporary financial challenges. While the overall rate of forbearance has seen a slight increase recently, it’s important to understand what’s driving this change and how it fits into the broader picture. According to Marina Walsh, VP of Industry Analysis at the Mortgage Bankers Association (MBA): “The overall mortgage forbearance rate increased three basis points in November and has now risen for six consecutive months.” This may seem concerning at first glance, but let’s break it down. The graph below, going all the way back to 2020, puts things into perspective: While the share of mortgages in forbearance has significantly declined since its peak in mid-2020, there has been a slight but notable increase in recent months. This uptick is largely tied to the effects of two recent hurricanes — Helene and Milton. Natural disasters like these often create temporary financial hardships for homeowners, making forbearance a crucial safety net during recovery. In fact, 46% of borrowers in forbearance today cite natural disasters as the reason for their financial struggles. Even with the most recent uptick, the share of mortgages in forbearance is nowhere near pandemic levels, and, thankfully, reflects a very small portion of homeowners overall. Why Forbearance Matters Forbearance can help borrowers avoid the spiral of missed payments and foreclosure. It provides breathing room to address challenges and plan next steps. And while most homeowners today are not in a position to need forbearance, thanks to strong equity and foundations of the current housing market, it is an option for the few who do need it. If you or a homeowner you know is facing financial difficulties, the first step is to contact your mortgage lender. They can walk you through the forbearance process and help you understand your options. Keep in mind that forbearance is not automatic — you need to apply and discuss the terms with your lender. Bottom Line In tough times, knowing your options can bring peace of mind. Forbearance isn’t just a financial tool — it’s a lifeline. And while the recent increase in forbearance rates might make headlines that give you pause, the truth is this option is working exactly as it should: helping those who need it most get through difficult moments without losing their homes.

More Starter Homes Are Hitting the Market

More entry-level homes – also known as starter homes – are popping up on the market. And after several years with very few homes available to buy and prices rising, there are finally some more options for first-time buyers. Inventory Is Increasing – Especially at Lower Price Points Over the past year, the total supply of homes for sale has improved. According to Realtor.com, in November there were 26.2% more homes for sale compared to this time last year, marking 13 months of inventory growth and the most homes available since December of 2019. Interestingly, the growth isn’t spread evenly among all types of homes, though. According to Redfin, starter homes have seen the biggest increase (see graph below): So, if you’re a first-time buyer who’s been sitting on the sidelines waiting because you thought you might never find a starter home in your market, this could be a game-changer. You finally have more options to choose from, and you just might be able to find one in your price range. How an Experienced Agent Helps You Find a Starter Homes Finding the right starter home at the right price point in your local market might feel like an unthinkable challenge, but a local real estate agent makes it easier. They stay up to date on the latest starter home listings in your area, so you don’t miss any opportunities. Your agent will help you focus on homes that match your budget and your needs, making the search less stressful. They’ll also guide you through how to make the right offer and negotiate to get the best outcome possible. On top of that, they handle the important details, like documentation and deadlines, so you can stay right on track. And if you have questions, your agent is there with answers and expert advice every step of the way. Bottom Line Starter homes are making a bit of a comeback, and this could be your chance to find one. Whether you’re ready to visit listings, need advice, or just want to see what’s out there, reach out to a local real estate expert.

Why More Sellers Are Hiring Real Estate Agents

Putting your house for sale on your own – often called “For Sale by Owner” or FSBO – might be on your mind. But you should know that it gets complicated very quickly, especially in today’s complex market. That’s why data from the National Association of Realtors (NAR) shows a record low number are going the route of selling on their own. Instead, more and more homeowners are choosing to work with a real estate agent (see graph below): And here’s why partnering with an expert is the go-to choice. Selling your home is a big deal, and while FSBO might seem like a way to save time or money, it comes with a lot of responsibilities. The selling process requires setting the right price, navigating a growing amount of legal paperwork, and creating a solid strategy to attract buyers. And going it alone often means taking on more than you bargained for. Let’s look at two big reasons why working with a pro can make all the difference. 1. Getting the Price Right One of the biggest hurdles when selling a house on your own is figuring out the right price. It’s not as simple as picking a number that sounds good – you need to hit the bullseye. Price your home too high, and buyers may overlook your listing. Price it too low, and you could leave money on the table or even raise red flags about the condition of your home. Real estate agents are experts in finding the right price for today’s market trends. As Zillow explains: “Agents are pros when it comes to pricing properties and have their finger on the pulse of your local market. They understand current buying trends and can provide insight into how your home compares to others for sale nearby.” With their knowledge of the local market, buyer behavior, and what homes like yours are selling for, an agent will help you make sure you set a price that’s competitive and that’ll draw in buyers. And it’s that perfectly strategic price that’ll set the stage for selling at top dollar. 2. Understanding and Managing the Paperwork Another part of the process is dealing with a growing stack of paperwork, from disclosure forms to contracts. Each document needs to be completed accurately, and there are legal requirements to follow that can feel overwhelming if you’re not familiar with them. This is another area where an agent’s expertise really shines. They’ve handled these documents countless times and know exactly what’s needed to keep everything on track. Your agent will guide you through the paperwork step by step, making sure it’s done right the first time and you understand what you’re signing. With their help, you can avoid unnecessary stress and mistakes that can lead to delays, legal complications, and more. Bottom Line Selling your house is a big decision, and having a trusted real estate agent on your side can make all the difference. Connect with a local real estate agent so you have a pro to help with everything from pricing your home to managing the details. That way it takes the guesswork out of the process and helps you sell with confidence. 

Don’t Miss Out on the Growing Number of Down Payment Assistance Programs

With rising home prices and volatile mortgage rates, it’s important you know about every resource that could help make buying a home possible. And one thing you’ll want to be aware of is just how much the number of down payment assistance (DPA) programs has grown lately. Take a look at the graph below to see how many new programs have been added in the last year, according to data from Down Payment Resource: More Programs, More Opportunities for You So, what does this increase mean for you? With more programs available, there’s a higher likelihood that one of them could help you reach your homeownership goals. And these programs aren’t small-scale help either – the benefits can go a long way toward covering a chunk of your costs. As Rob Chrane, Founder and CEO of Down Payment Resource, shares: “We are pleased to see a growing number of these programs, and think they are becoming a targeted way to help first-time and first-generation homebuyers struggling to save for a down payment get into a home they can afford. Our data shows the average DPA benefit is roughly $17,000. That can be a nice jump-start for saving for a down payment and other costs of homeownership.” Imagine being able to qualify for $17,000 toward your down payment—that’s a big boost, especially if you’re looking to buy your first home. With that level of help, buying a home may be more within reach than you think. But it’s worth calling out that the growth in DPA options isn’t just focused on first-time and first-generation buyers. Many of the new programs are also aimed at supporting affordable housing initiatives, which include manufactured and multi-family homes. This means that more people, and a wider variety of home types, can qualify for down payment assistance, making it easier for you to find an option that fits your needs. Talk to a Real Estate Expert About What’s Available for You With so many DPA programs out there, you need to make sure you’re finding the right one for you. That’s why it’s key to lean on your real estate and lending professionals for guidance. The Mortgage Reports says: “The best way to find down payment assistance programs for which you qualify is to speak with your loan officer or broker. They should know about local grants and loan programs that can help you out.” Your loan officer or real estate agent will know what’s available in your area and can point you toward programs that align with your goals. Bottom Line With more down payment assistance programs than ever before, now’s a great time to explore how these options can help on your homebuying journey. Connect with a team of expert advisors to see which DPA programs could be a fit for you.