Covid mortgage bailouts are expiring fast, but here’s why a foreclosure crisis is unlikely

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GeorgePeters | Getty ImagesThe number of borrowers in both government and private sector Covid mortgage bailout programs is falling fast, but for those still in trouble, the future is not as bleak as originally thought.Extraordinarily high levels of home equity, thanks to the recent runup in home prices, has struggling borrowers in a far better position now than they were at the start of the pandemic.The number of active mortgage forbearance plans, in which borrowers were allowed to delay their monthly payments, fell by more than 5% from the previous week, according to a new report from Black Knight, a mortgage data and analytics firm.The drop was driven by August expirations. Borrowers were allowed up to 18 months of forbearance from entry into the programs, so expirations are now rolling. September is expected to see an outsized group of 400,000 expirations because the wave of borrowers enrolling was highest in March and April 2020.There are still 1.618 million borrowers in
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