Under normal circumstances, the disastrous economic consequences of the COVID-19 pandemic would lead us to expect a massive wave of foreclosures.
Since the beginning of the pandemic, the country entered a recession and the GDP is expected to fall by another 25% to 40% in the second quarter; over 40 million Americans filed for unemployment; 4.5 million homeowners opted into mortgage forbearance programs; and delinquency rates on loans have risen to their highest levels since the Great Recession. Under normal circumstances, it would be entirely logical to anticipate that all of this would lead to another foreclosure tsunami.
But if anything is true of 2020, it’s that the phrase “under normal circumstances” simply doesn’t apply.
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