Experts do not expect a large increase in foreclosures when Covid aid programs end.

Concern over a foreclosure spike after COVID help ends is wildly overestimated. As forbearance periods come to an end and homeowners resume making their mortgage payments, one mortgage and foreclosure expert said concerns over foreclosure increases have been "wildly overestimated."  Today's housing market provides numerous financial relief opportunities for homeowners who are struggling to make their monthly payments. "Demographics (millennials reaching prime homebuying age in very large numbers), low interest rates and pandemic-driven trends (migration from urban renter to suburban homeowner) will continue to drive demand, but it will likely slow down a bit until price appreciation slows down, and perhaps even corrects a bit in some of the higher-priced markets," RealtyTrac Executive Vice President Rick Sharga said in an interview with FOX Business. But as homeowners exit forbearance, Sharga notes, it will not lead to a significant uptick in foreclosure activity and won't have a major impact on the overall housing market.  "While some borrowers will not be able to recover from the financial distress COVID inflicted on them and will face the choice of selling their home or losing it to foreclosure, there won't be enough of those properties to fix the supply/demand imbalance in the market, and they shouldn't need to be sold at so much of a discount that they'll impact prices in any given market," he said.

Source: Rise and Shred