According to this article by CNBC, about 7% of all active mortgages are in some sort of forbearance program.
The number of seriously delinquent mortgages, at least 90 days past due, more than doubled from May to June, according to CoreLogic. That is the highest level in more than five years.
More than 2 million forbearance plans are set to expire this month. Three quarters of these borrowers have not started repaying but instead have extended their plans another three months, sinking deeper in debt.
Foreclosure filings jumped 11% from July to August according to Attom Data Solutions. This is probably because a couple of state prohibitions on foreclosures ended. The big question is what will happen when all prohibitions on foreclosures come to an end and government bailout money dwindles. It is likely that there will be more foreclosures, creating an increase in inventory and putting downward pressure on real estate values.
When that finally happens, perhaps in a year or two, there may be good opportunities for investors to find positive cash flow real estate. At present, it is very difficult to find cash flowing real estate except in a few markets. Cap rates have become very low. When new foreclosures hit the market, cap rates may start increasing again.