Published by FOX Business | November 19, 2021
After the federal foreclosure moratorium ended in July, and the eviction moratorium closed in September, the number of foreclosures has been growing.
Foreclosure activity saw an uptick in October, marking the sixth consecutive month of annual increases, according to the October 2021 Foreclosure Market Report from ATTOM Data Solutions. After the federal foreclosure moratorium ended in July, and the eviction moratorium closed in September, the number of foreclosures has been growing.
Foreclosure filings – which include default notices, scheduled auctions, or bank repossessions – rose 5% month-over-month in October. They also increased 76% from a year ago, according to the report.
Although foreclosures are increasing, data shows mortgage servicers are working with homeowners on solutions to avoid them. In fact, many of the foreclosed properties were just vacant homes.
“As expected, now that the moratorium has been over for three months, foreclosure activity continues to increase. But it’s increasing at a slower rate, and it appears that most of the activity is primarily on vacant and abandoned properties or loans that were in foreclosure prior to the [COVID-19] pandemic.”
–Rick Sharga, Executive Vice President at RealtyTrac
Across the U.S., about one home out of more than 6,675 housing units had a foreclosure filing as of October. The highest foreclosure rates during that month were seen in Illinois, Florida, New Jersey, Nevada and Ohio.
“Most foreclosure activity for the next few months is likely to be foreclosure starts since virtually nothing entered the foreclosure process during the past year,” Sharga said. “The ratio of foreclosure starts to foreclosure completions will normalize over time as we get back to normal levels of activity.”
Homeowners struggling to make their monthly payments have several options available to them, and foreclosure can be avoided in many cases. The first step is to contact their servicers to discuss their options.