A large chunk of US residential properties have foreclosure filings — default notices, scheduled auctions or bank repossessions in the third quarter based on a Foreclosure Market Report. ATTOM Data Solutions, a licensor of the nation’s most comprehensive foreclosure data revealed that there are 27,016 U.S. properties currently in danger of being foreclosed despite the current moratorium under the CARES Act.
There are moratoriums which were put in place by the federal, state and local governments through the CARES Act and other regulations, that put all foreclosure activities, intents and purposes to a halt.
However, it is important to remember that the numbers we are seeing today are artificially low, even as the number of seriously delinquent loans continues to increase, and that we’ll see a significant—and probably quite sudden—burst of foreclosure activity once these various government programs expire according to Rick Sharga, EVP of RealtyTrac, an ATTOM Data company.
The Q3 data is 12% lower compared to the previous quarter, 81% lower compared to last year. Lenders started the foreclosure process on 15,129 properties in Q3, that’s the 21st quarter in a row to show a decrease in foreclosure starts.
The top 5 states with the highest rates of foreclosure filling are:
- South Carolina
- Illinois
- New Mexico
- New Jersey
- Delaware
In Q3, foreclosures took 830 days processing time whereas it took only 685 days for the previous quarter but slightly higher from last year which took 841 days.
While it is daunting to consider, we may be seeing more repossessions by lenders once the foreclosure moratoriums end. But Sharga added that the number of repossessions may hopefully not be as many as people expect.
Considering the amount of homeowner equity, over $6.5 trillion—many homeowners in financial distress may opt to take advantage of strong demand among homebuyers and sell their property rather than risk losing it to a foreclosure auction.
When considering options for your homes, Analytics Before Foreclosure helps families in financial distress to NOT fall into desperate actions. Better options may be available; therefore people should give Analytics Before Foreclosure a call to help analyze the situation and come up with intelligent actions for your home. Don’t let foreclosure be the only solution! Call us now at 866-857-5405!
