into foreclosure and be sold. They're not paying their mortgages right now because they don't have to. The lenders start the process and it's reported as a pre-foreclosure. When the moratorium is lifted, these people will pay the back interest and catch up, or they'll sell their homes and take their equity.

This is not like 2008, where people owed more than the home was worth. Most people have realized an increase in their property value, not a decline.