Here’s a look at why that isn’t the case.

• There Are Fewer Homeowners in Trouble This Time

• 38.6% left the program paid in full

• 44% negotiated work-out repayment plans. 

• 0.6% sold as a short sale or did a deed-in-lieu.

• 16.8% left the program still in trouble and without a loss mitigation plan in place 

• Those Left in the Program Can Still Negotiate a Repayment Plan 

• Most Homeowners Have More Than Enough Equity To Sell Their Homes 

• There Have Been Far Fewer Foreclosures Over the Last Two Years

• The Current Market Can Easily Absorb Over a Million New Listings

• Bottom Line

• The end of the forbearance plan will not cause any upheaval in the housing market. Sharga puts it best:

• “The fact that foreclosure starts declined despite hundreds of thousands of borrowers exiting the CARES Act mortgage forbearance program over the last few months is very encouraging. It suggests that the ‘forbearance equals foreclosure’ narrative was incorrect. . . .”