2008 déjà vu?

The million-dollar question that has been looming over for the past few months “Is an oncoming foreclosure crisis looming and will it differ from that of 2008?” As we’ve all recently seen, market prices are up, sales are up, and inventory is low.

For starters, we’re in two completely different markets, according to Pat Jackson, President and, CEO at Sabal Capital Partners, LLC. In 2008 there was a bank and financial crisis. In 2020, we’re seeing an economic crisis that has been caused by a biological virus.


This time around, our financial institutions have been able to learn from past mistakes passing regulations such as 2010’s Dodd-Frank Wall Street Reform and Consumer Protection Act. “*The main way the law aimed to stop another potential financial crisis was by adding more mechanisms through which the government can regulate and enforce laws against banks and other financial institutions.” We’ve all heard or witnessed how today’s mortgage loan underwriting is much more tedious, harder to finesse yet less risky which proves banks learned their lesson and coincides with the statement above. In 2008 banks were unprepared and could not handle unforeseen defaults. Is it different this time around? Do you believe lenders and stockbrokers 2008 playbook will still guide us through the next economic burst if any?


Bill Emmons an Economist at St. Louis Federal Reserve says “It definitely looks like there will be another major event, but hopefully not as bad as the foreclosure crisis associated with the Great Recession.” He’s predicted with the $200 billion in mortgage-backed securities, low mortgage rates are to remain low through 2021.


Many have received stimulus checks and as time passes, people are coming up with new, innovative ways to get through this time and prevail. Social media is booming, home offices are huge, even schools in NY have canceled snow days for 2021 due to the increase and efficiency of at-home virtual schooling. Amazing what we can do when the time and circumstance crunches. Although inevitable, I don’t think anyone can put their finger on a figure of distressed properties to come as we’re facing an ongoing extension of the eviction and foreclosure moratorium. Overall, I’d say things are looking up in comparison to 2008 and we’re much more aware and ready to tackle a crisis.

https://therealdeal.com/2020/09/24/a-foreclosure-crisis-is-looming-but-heres-whats-different-from-2008/?utm_campaign=later-linkinbio-therealdeal&utm_content=later-10468546&utm_medium=social&utm_source=instagram

https://www.linkedin.com/pulse/crisis-different-than-last-pat-jackson/

*SmartAsset.com






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