If you’ve been watching me for any length of time, you know I believe the government has built a dam and the water is about to start pouring over the edge. We have homeowners in forbearance, tenants months behind on rent, businesses applying for PPP money, and unemployment at a record high, but we are supposed to believe the economy is doing amazing. Sound contradictory? It is.
The government has kicked the can, and kicked the can again, and again, and again. However, something jumped out to me as interesting on this last stimulus. Normally, we have been getting these blanketed set in stone dates on forbearance ending, and then the can gets kicked to a new date. Yet this time, forbearance now has a varied end date by loan type and when you took out the loan. Based on these varied rules, all forbearance will end between June and December of this year. In my opinion, this was done to soften the blow to the housing market by staggering the foreclosures. I would be surprised if they went to all of this trouble to stagger home foreclosures and kick the can again. I am pretty sure this will be the final extension and then the chips will start to fall. Right around the fourth quarter of this year is what I am predicting.
