Pandemic Foreclosure Tsunami Not on the Horizon

Pandemic Foreclosure Tsunami Not on the Horizon
Written by Publishing Team

ATTOM says foreclosure activity in the just ended year was in The lowest level since the company began tracking it in 2005. Foreclosure filings, including notices of default, scheduled auctions, bank repossession or completed foreclosures, were filed on 151,153 US properties during the year, 29 percent lower than 2020, and 95 percent less than a peak of nearly than 2.9 million in 2010. Filings affected 0.11 percent of all housing units, compared to 0.16 percent in 2020 and a peak of 2.23 percent in 2010.

“It’s clear that the COVID-19 tsunami that some people had predicted didn’t happen,” said Rick Sharga, executive vice president of RealtyTrac, an ATTOM company. “Government and mortgage sector efforts have prevented millions of unnecessary foreclosures, and while we may see a slight increase in the first quarter, it is likely that we will You will not see mortgage activity return to normal levels until the end of 2022. “

Activity was higher at the end of the year. Many homeowners were in or about to enter the last three months of foreclosure eligibility and the federal foreclosure moratorium expired at the end of July. Filings in the fourth quarter totaled 56,174, which represented 37.2 percent of the year’s total and an increase of 23 percent over the third quarter. One in every 2445 properties had a file during the reporting period.

In December, one of 7,647 drugs received a file. This was up 65 percent from the previous December but was 8 percent lower than it was in November 2021.

There were 25,662 completed foreclosures (REOs) during the year, down 49 percent from 2020 and 98 percent below a peak of 1,050,500 in 2010. This was the lowest number of foreclosures in any year since 2006, data for the year is available the first.

“We believe property returns will remain below normal throughout 2022,” Sharga noted. Homeowners own a record amount of equity—more than $23 trillion—and more than 87 percent of homeowners in foreclosure have positive equity. This means that Most borrowers will have the opportunity to sell their home at a profit Instead of losing everything in a foreclosure auction.”

Foreclosure starts were also at an all-time low of 92,346 during the calendar year. This was 30 percent lower than in 2020 and 96 percent from the 2009 peak of more than 2 million.

“The government’s suspension of foreclosures, the mortgage foreclosure program and the mortgage service guidelines passed by the French central bank in August, have led to a continuing artificially low foreclosure over the past year,” Sharga added. “While a recovering economy should prevent a significant increase in defaults, we should see a gradual increase in foreclosure activity as these programs expire and providers exhaust all loan modification options for borrowers who are in delinquency.”

Nevada, which had the highest foreclosure rates during most of the housing crisis, along with Arizona, again recorded the highest rate of filings at 0.26 percent of its housing units. Followed by Illinois (0.23 percent); Florida (0.21 percent); Delaware (0.21 percent); and New Jersey (0.19 percent).

US real estate booked in the fourth quarter of 2021 was in foreclosure averaging 941 days, up 2 percent from the previous quarter and up 10 percent from last year. The length of time was highest in Hawaii at 2,491 days and New York and Pennsylvania with an average of just over 1,500 days.

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