Boston investors are rubbing their hands with glee at the prospect of a surge in repossessed Boston condos as homeowners are believed to have fallen behind on their mortgage repayments, putting them at risk of losing their homes once moratoriums end.
The Wall Street Journal says that investors are expecting a “potential bonanza” of distressed properties to be auctioned off, in addition to the emergence of a new wave of renters.
Around 3.5 million home lines are currently in forbearance, as of September 6, according to data from the Mortgage Bankers Association. And there are about a million more homeowners who’re believed to be behind on their mortgage payments, who haven’t entered into a forbearance program.
Now, investors are getting ready for thousands of those homes to come onto the market. Private individuals and investment firms have bought more than 1 in every 10 homes sold in the U.S. over the last decade, and that number could well increase if the worst comes to bear.
Once foreclosure moratoriums expire at the end of the year, it’s likely that thousands of homes will hit the market, and investors are reportedly getting ready to snatch them up.