When the Moratorium Ends

What happens when the CDC moratorium ends this fall?  Well, time will tell but experts are forecasting a heavy load of foreclosed inventory hitting the market at the end of this year. Typically Houston sees on average 500-1000 per month of bank-owned homes for sale, however, last year was anything but typical which could translate to as many as 5000 homes hitting the market in one month.

The American Enterprise Institute analyzed Federal Housing Authority data and claims that 40,147 Houston families are delinquent on their mortgages as of May. Of those, nearly 30,000 are 90 days past due. 

The foreclosure process in Texas is typically a non-judicial foreclosure. (Cash-out home equity foreclosures are judicial). Non-judicial foreclosures average between 60-90 days from start to finish. But these cannot get started until after the moratorium has been lifted. So the 60-90 day process can’t even begin until the moratorium is lifted and that expected date is 9/1/2021. So to summarize this expected flood of inventory won’t begin to show up until November or December 2021.