Monday, October 25, 2021

Foreclosures in the US increase after the COVID-19 forbearance programs expire

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Foreclosures in the United States have risen dramatically across the country after the emergency measures helping people stay in their homes expired, an industry report said Thursday.

 

According to mortgage data company ATTOM, new foreclosures or startups were up 32% from July to October compared to the April to July period – and 67% from the same period in 2020.

 

While the increases are dramatic, the report says they are particularly pronounced largely because new foreclosures have been exceptionally low since the beginning of the COVID-19 pandemic due to emergency programs that have averted foreclosures for millions of homeowners.

 

These programs are expiring and the market has seen a surge in launches as a result, the report said.

 

Typically, an average of about 40,000 new foreclosures are performed per month in the United States. When the aid programs went into effect, there were fewer than 5,000.

 

Thursday’s report showed 19,600 foreclosures in September, up 24% from August and 102% from September 2020.

 

Rick Sharga, executive vice president of RealtyTrac, said the launches are still “well below” historical levels.

 

“Foreclosure measures in September were almost 70% lower than before the COVID-19 pandemic in September 2019, and [third quarter] Foreclosure activity was 60% lower than in the same quarter of this year, “he said.

 

“Even with a similar surge in foreclosures over the next few months, we will end the year well below what we would see in a normal housing market.”

 

According to the report, most new foreclosures from July to October were in Florida (5,400), Illinois (3,600), Texas (3,000), Ohio (2,600), New Jersey (2,100), and New York (2,000).

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