How many foreclosures

Much of the overall decline in foreclosure activities during the pandemic can be attributed to the federal foreclosure moratorium included in the CARES Act, signed into law on March 27, The moratorium barred lenders from initiating foreclosure proceedings on loans insured by the Federal Housing Administration , the U. Department of Agriculture, and the Department of Veterans Affairs. This legislation also gives homeowners facing COVID-related financial difficulties the right to request a forbearance plan of up to days.

Under a forbearance plan, the lender works with the homeowner, allowing a pause in payments or reduced payments, though not debt cancellation. As the foreclosure ban was recently extended by the Biden administration through June 30, , struggling homeowners who entered into a forbearance agreement with their lender prior to June 30, are now eligible for an additional six months of relief. And most states did not enact any local foreclosure protections that would further protect homeowners with privately backed mortgages.

In states that did, such as New York, Massachusetts, and Florida, many of these policies have expired and court proceedings resumed. So will the end of the federal moratorium, whenever that occurs, result in a surge of foreclosures? Just prior to the crisis, low unemployment and a sustained period of high economic growth contributed to a 0. But by April 1, , as the economic impact of the pandemic manifested, that proportion rose to 2. Levels reached a peak in early June , when 8.

Recently, at the end of March , this number had declined to 4. Sign up for the daily Marketplace newsletter to make sense of the most important business and economic news. More than 45, U. A foreclosure moratorium for federally backed mortgages, along with forbearance plans that let borrowers pause their payments, have kept filings artificially low, Sharga said.

But more and more borrowers have exhausted their maximum 18 months of forbearance, and the moratorium expired at the end of July. Analysts are not expecting anything like the foreclosure crisis during the last recession and its aftermath, when as many as 10 million homeowners lost their homes.

This time, the job market is rapidly recovering and home prices are still rising, said Mike Fratantoni , chief economist of the Mortgage Bankers Association. But selling still comes at a cost. Show details about this statistic. Exclusive Premium functionality. Register in seconds and access exclusive features. Full access: To this and over 1 million additional datasets Save Time: Downloads allow integration with your project Valid data: Access to all sources and background information.

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Statistics Number of properties with foreclosure filings U. Topics Mortgage industry in the U. Housing Market Millennial homeownership in the U. Rental market in the U. Unfortunately, this scenario is all too real, and foreclosure statistics show that millions of Americans experienced it during the financial crisis. A decade after the recession, things were finally looking up.

The foreclosure rate was at an all-time low… and then the pandemic hit. Unemployment skyrocketed due to stay-at-home orders, and high unemployment usually leads to foreclosures. Fortunately, despite millions of delinquent mortgages, the rates are still low, and the numbers are actually improving.

At least not yet. While the national average remains good, there are states and regions that are bucking that trend. The number of mortgages in serious stages of delinquency is actually five times higher than a year ago. It remains to be seen. Delinquency is improving, and prepayment activity is going strong.

So despite the inevitable increase in foreclosure filings during , we might get by without another complete crash. Easy access to credit, exciting mortgage offerings, low-interest rates… Those were just a few of the things that caused the housing market burst, which, in turn, was a major factor in the financial crisis and the sheer number of foreclosures that ensued. Despite 3. Foreclosure stats show that the moratoriums put in place by federal and state agencies are preventing a lot of people from losing their homes.

Despite this, there has been a slight uptick in foreclosure filings near the end of the year. A total of 11, US properties had some sort of foreclosure filing in October alone. In general, the foreclosure processes are longer than ever, meaning that lenders are better off and they can afford longer grace periods, while people at risk of losing their home have more time to try and get back on their feet.

Vermont had only one foreclosure filing for every 83, housing units and a total of four foreclosures in the third quarter of In addition, foreclosure statistics for Florida, New Jersey, and South Carolina show rates that are significantly higher than the national average. Families in these states are at a much greater risk of foreclosure. Illinois and New Mexico are next with one foreclosure per 3, and 3, housing units, respectively. Of the three, Illinois has the highest number of housing foreclosures at 1,, it is followed by South Carolina with total foreclosures, and New Mexico is last with foreclosed properties.

While the national average is days, some states have exceptionally short foreclosure timelines. When CARE act protections expire, mortgage foreclosures could more than double from the first quarter of to the second one.

The biggest foreclosure spike will probably hit California, Colorado, and Massachusetts.