This week we feature a couple national real estate articles in the news. As expected, they discuss trends and important news related to COVID 19 and the impact of it. The world has certainly seen changes in lifestyle as a result of Coronavirus, but not all of the real estate news is bad.
Mortgage Forbearance Could impact future loans
According to the government, Mortgage forbearance should not penalize anyone long term, which can be great news. However as this article states, “that forbearance has been showing up on these borrowers’ credit reports, making it nearly impossible for many of them to refinance their mortgages into lower monthly payments or qualify for a loan on a new property, say if they get a job in another city. Traditionally, owners who resorted to a forbearance program had to make up the skipped payments and then wait a year before applying for a new home loan.”
Not all lenders will follow the FHFA guidelines, so it is important to consider and weigh your options if you are considering mortgage forbearance as this is a new dynamic and factor for everyone. Here’s the article for more information:
Baby Boomers’ Real Estate Plans Change. This article discusses the changes many baby boomers have long considered, but have moved up due to Coronavirus. With job changes and work hours different, many baby boomers have prioritized living in smaller, more rural areas. This article is especially relevant to us in Durango, as the lifestyle in the Southwest avoids large crowds and cities. It will be interesting to see if people decide to move to Durango after Coronavirus, as well as if those who planned to retire elsewhere decide to stay.
During this unprecedented time, we are continually grateful to live and work in a place with open space, beauty, and a small population. It’s always been a desirable place to live, but it brings a new appreciation that we are spared some of the complications living in a densely populated area brings. As always, please let us know if you have any questions or would like to discuss the La Plata County real estate market.