Are a ton of foreclosures about to hit the market?

The answer is absolutely not. Let me tell you why:

This is a myth that's happening among a lot of renters. People that don't own homes yet are all waiting for the shoe to drop and a bunch of foreclosures to hit the market. Let me tell you why it's not going to happen:

There is something called forbearance. And a lot of people did tap into it at the beginning of the pandemic. The experts thought that about 30% of mortgage holders would need to tap into it at the beginning of the pandemic. In other words, forbearance is where a lender gives you some level of grace.

They say, "Hey, you can stop making your payments for a while, or you can make a minimum payment or we'll tack on your payments to the end of the loan." There are a lot of different variations to it.

But the government said they want everybody to have a six-month opportunity if they've been struck by COVID or COVID-related issues to tap into this forbearance. ...

What percentage of Americans would you guess paid off their home?

Think about that for a second: Completely own their home, free and clear.

In other words, when you're driving down the street in your neighborhood, out of 10 homes, how many people have paid their home off and outright own it?

Would it be 2 homes, 3 homes, 4 homes?

The answer is 38% of Americans have paid off their home in full, which is absolutely amazing.

The equity for homes in America is off the charts. It's incredible. So that's good.

Now, why do I bring this up?

The reason I bring it up is because people that have equity in their home actually have a huge, powerful advantage when it comes to moving up to their dream home.

And here's why:

They can actually do something that a lot of sellers can't. They could go buy a home and finance their second home (what they're going to buy next). And they won't have two mortgages.

So they have no pressure on themselves when it comes to buying their next hous...