OK, please allow me to provide some context. Imagine homeowners who recently bought or refinanced their home. At the time of the transaction, they were gainfully employed, had income and could easily afford the monthly payment.
Now, after the state and federal government forced the closing countless business, millions of homeowners are out of work. They now don’t have the income to pay. The transactions are recent and the loans have not yet been sold to Fannie or Freddie. In normal times, a loan with delinquent payments couldn’t be sold.
China created this problem, but our government created this job destroying lockdown. The sooner we all return to work the sooner life returns to normal.
Sure, but on the other side, people with cash on hand, ‘could’ find homes to purchase in a fire sale, but .gov isn’t allowing asset prices to fall. This is another example of propping up prices, instead of allowing a quick market correction or allowing younger generations to purchase homes at a cheaper rate.