U.S. Foreclosure Activity Up From 2022

photo of a foreclosure stamp over a photo of a house

U.S. Foreclosure Activity Up From 2022

The mortgage crisis of 2007 was caused by the availability of “creative” financing, making it very easy to get a loan to buy a home. This “easy” access to money caused a rush on home buying across the country, with home buyers who never before could afford a home, now qualifying for a mortgage with little if any money down. In some cases, home buyers walked from the Closing table with a new home and cash in their pockets.

In the short term, the housing market became a cash cow, seeing home sellers getting more than asking price for their homes, receiving multiple offers. It was then I learned the saying:
“the house you look at today and think about tonight, will sell to the person that saw it yesterday and thought about it last night”.
In other words, if you want it, you better buy it now.
But this all came to an abrupt and painful end when these “creative” loans hit their rate adjustment dates, leaving many unable to meet their new monthly obligations.
Sound familiar? With subtle differences, it should.
From the mortgage crisis came historically low interest rates, which quickly turned the housing market around. Again we saw thousands if not millions of Americans enter the housing market before rates climbed. As I’ve written in other posts, today approx. 66% of all residential mortgages are below 4%, and these low rates made homes more affordable. In some cases buyers saved nearly $1000/month just on their loans compared to mortgages today at 6%+.
And this once again led to a buying frenzy, with the result being never before seen growth in home values. Of course, Covid also pushed the rates down and prices up.
Today with the mortgage crisis almost forgotten, Covid behind us and a better if not healthy or “normal” economy, some are realizing their decision to buy during the frenzy is catching up with them. Those who bought high, are finding that selling is proving a little harder than they expected. Albeit just a few, I’ve now begun seeing examples of homes selling very close to, if not below what the seller just paid a year or 2 ago.
That being said, I’ve been telling my clients since the Covid rush started, that things are different this time for I think one reason; high rates can be and are being lowered, which should bring some buyers, albeit slowly, back into the home buying market. A move that will help prices to remain stable. Conversely, the only solutions available to troubled homeowners, short sale or foreclosure, did nothing but push prices further down as healthy sellers were now forced to fight with low priced distressed homes.

A recent study conducted by Property data analytics company ATTOM report an increase in foreclosure activity in 2023 over 2022. But read further and the numbers are really just returning to pre-Covid norms. Some takeaways from this report:

1. 2023 Foreclosure filings up 10% from 2022

2. 2023 Foreclosure fillings down 28% from 2019 and 88% from the 2.9m filings in 2010
Where are Foreclosures most prevalent in the Country?
1. States with highest starts in 2023:
a. California 29180 b. Texas 28553 c. Florida 27427 d. New York 17330 e. Illinois 13764 2. States with the highest Foreclosure rates in 2023: a. New Jersey 0.46% b. Illinois 0.42% c. Delaware 0.41% d. Maryland 0.40% e. Ohio 0.38% f. South Carolina 0.38% g. Neveda 0.37% h. Florida 0.37%

If you are unsure of your home’s value, please feel free to contact me for a Free Home Valuation. As a Realtor with over 20 years experience, and one of only a few Realtors who have also completed the full State Appraiser licensing course, I am more than qualified to offer my opinion; regardless of where you are in Florida.
If you’re concerned about selling your home in a changing market, don’t let my flat fee/virtual service concern you. I was one of the first Agents in South Florida to list, negotiate and sell a Short Sale. I have over 20 years of real estate experience, 18 as Owner/Broker.

Eviction and mortgage debt, foreclosure or difficulty to payback bank mortgage loan concept, bankruptcy man and family fighting to hold back their house with big legal hand evict it by law.

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