96
The Big Finish
Wrap your head
around the market's
leading indicators.
UNPRECEDENTED
EQUITY COULD HELP
PREVENT 'FORECLOSURE
TSUNAMI'
Efforts at federal and local levels to help homeowners into forbearance rather than foreclosure have been enormously effective,
according to economists, but the uncertainty and temporary nature of those protections leave the market at risk of a possible wave of
foreclosures. But, unlike during the Great Recession, today's unprecedented home equity could help prevent a wave of foreclosures,
said First American Mortgage Economist Odeta Kushi in an article about the significance of home equity when it comes to avoiding
foreclosure.
"e distress that many homeowners face in this recession is real but, because of the equity buffer, we are likely to avoid the
foreclosure tsunami many are predicting."
Source: First American Calculations, Fannie Mae, Q2 2020
Chicago,
IL
Washington,
D.C.
New
York,
NY
Miami,
FL
Detroit,
MI
Riverside,
CA
Dallas,
TX
Phoenix,
AZ
Los
Angeles,
CA
San
Francisco,
CA
Seattle,
WA
Atlanta,
GA
Boston,
MA
Philadelphia
PA
Houston,
TX
60%
50%
40%
30%
20%
10%
0%
-10%
Equity Compared to Last Recession
Percent Homeowner Equity (Inverse of Loan-to-Value Ratio)
Q2 2009 Q2 2020
