Forbearance Will Not Lead to a Huge Wave of Foreclosures

Previously I wrote Forbearance, Delinquencies and Foreclosure and I argued:

With house prices up sharply year-over-year … very few borrowers will have negative equity, and most seriously delinquent borrowers will be able to sell their house, as a last resort, and avoid foreclosure.

So, although foreclosures will increase from the record low levels, it wi…