Atlanta homeowners have the highest anxiety about facing foreclosure going into 2021, according to a new report from RedFin.
About 3.8% of the city’s property owners are concerned about their mortgages. Atlanta also has the fourth-highest share of homeowners who are delinquent on their mortgage payments (13.5%).
Atlanta Homeowners Concerned About Foreclosing In 2021
The high numbers can be attributed to a misconception that Atlantans had over what to do with their mortgages when the COVID-19 pandemic hit.
“There was a misunderstanding in Atlanta for what the different options are for people in forbearance,” said Atlanta Redfin agent Ronisha Carson. “People didn’t know they could refinance, do a prorated monthly payment or tack it on to the end of their loan.”
“In my experience selling foreclosed properties, some people don’t take advantage of forbearance because they aren’t educated on what it entails,” said Redfin agent Gina Sapnar. “There are people who are in forbearance who don’t understand how repayment works. For some people payments are tacked on to the end of the loan, but for others it may be a large payment due immediately at the end of forbearance as a lump sum, which could be very tough for people to repay.”
Wave Of Foreclosures Likely In 2021
Because many mortgage lenders are ending their assistance programs, RedFin is forecasting a wave of foreclosures in 2021. How bad will it be? Not as bad as the Great Recession of 2009, according to real estate professionals.
Experts are hoping that federal and state authorities step up this time — not lenders — to buoy homeowners.
Final Thoughts
If you’re a homeowner in financial distress, there are some avenues you can take to get assistance. Here are some housing resources you can take advantage of.
Thinking of acquiring a property in foreclosure? Here’s what you need to know.
Atlanta has one of the best real estate markets in the country, with affordable housing in every quadrant of the city. Large backyards, manicured parcels and strong neighborhoods with ample dining amenities make it one of the top places for transplants.
Keep up with what’s going on in Atlanta’s real estate scene here with our Apartment Guide.