05/04/2026
Home Foreclosures Jump 28% as Safety Net Shrinks
U.S. foreclosure activity rose sharply in March, with filings up 28% year over year, The Wall Street Journal reports.
The increase follows recent policy changes that scaled back Biden-era mortgage relief programs designed to help distressed borrowers remain in their homes
During the pandemic, FHA borrowers were allowed expanded use of "partial claims" to defer arrears through government-backed assistance
HUD had removed limits on repeated use of the program, enabling some borrowers to accumulate large deferred balances
Meaningful changes: New rules limit borrowers to one partial claim or modification every two years and require three consecutive payments before reapplying.
Impact: Industry estimates suggest hundreds of thousands of borrowers could ultimately lose their homes over the next 12 to 18 months.
(Wall Street Journal) 05/04/2026 published by Arkansas Business.