04/27/2022
Many people are asking "How long can this housing bubble continue?"
Signs of the time are beginning to show themselves... reports show that mortgage companies have seen a significant decline in numbers of new loans. Layoffs are occurring in the lending industry.
As government programs and forbearances end, foreclosures are on the rise. In fact, according to one source, foreclosure activity is up nearly 40% from the end of 2021.
Attom's Foreclosure Market Report shows 33,333 properties with foreclosure filings nationwide in March. That is a surge of over 29% from February numbers.
One in every 1795 properties had a foreclosure filing in the first quarter, per Attom. Illinois led all states in foreclosure filing rates.
The steep uptick in the first quarter likely signifies the start of a steady rise in foreclosure numbers this year as we see servicing workflows return to normal.
This market bears a close watch as the economy teeters.
You may ask, "Why didn't these owners sell their homes before foreclosure?" That is a valid question. In this wild real estate market, it appears all houses have enormous equity. Unless you have multiple loans, have lost the ability to pay, had your business turned upside down due to the pandemic or simply have no place to move due to high prices.
Homeowners who took Forbearance and are now coming out of this protected time are surprised to see that the debt was not forgiven but simply added on to the mortgage. Couple this with the uncertainty of these times, and many are crippled with anxiety with no where to turn.
If you find yourself in any of these situations and feel you have no where to turn, give us a call. We are experienced in the default market and can help you figure out your best options.
Times are hard. Let's help each other through this.
Ala Carte Realty 317-509-6797
