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OpenDoor back open for business

Opendoor’s CEO Eric Wu (Credit: Opendoor)

OpenDoor will resume operations in Phoenix this week, with plans to reopen in more than 20 additional markets in the months ahead. The SoftBank-backed firm is emphasizing its ability to limit personal interactions and has started offering virtual tours, Bloomberg noted.

  • Be Smart: OpenDoor halted purchases in March and laid off more than a third of its staff. The home-flipping company has considered converting some of its properties into rentals as it gets stuck with excess inventory. 
  • Going all in: Purchasing homes over the summer with the intention of reselling them in the fall could prove costly if the U.S. is mired in a recession or hit by a second wave of the virus. The company uses debt to buy homes, and its borrowing costs rise the longer it holds onto a property. 
  • The backdrop: The number of U.S. mortgages in forbearance increased again in the last full week of April, but new requests slowed significantly from the pace earlier this year. A total of 3.8 million homeowners are now in forbearance plans, accounting for 7.54% of all mortgages; however, the decline in requests and approvals suggests that homeowners are still largely able to pay their mortgages, according to the Mortgage Bankers Association.

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