New data revealed a major increase between Dec. 2021 and Jan. 2022 in loans sent to foreclosure. This shows they’re on the rise.
A report from Black Knight shows that lenders took back over 2,634 homes in February 2022.
That was a 70% more than 2021.
What does foreclosure mean?
Foreclosure is when a mortgage lender takes back a home for failing to pay.
The process is different by state, according to the Consumer Financial Protection Bureau.
In some states, lenders can foreclose without going to court.
This is called a non-judicial foreclosure.
This usually happens to a home if a homeowner doesn’t pay mortgage payments.
What does it say about the housing market?
The rise in foreclosures is a hard on the economy.
In fact, data shows that there could be thousands of them as various forbearance periods come to an end.
“When their forbearances end, they’re less likely to be able to resume their payments and more likely to end up in foreclosure,” Holden Lewis, home and mortgage expert at NerdWallet explained.
Realtor.com senior economist George Ratiu says pandemic assistance ending is a sign of things to come in 2022.
“The silver lining for housing markets and homeowners is that January’s rate remains 40% below the value registered before the pandemic,” he explained.
How to buy a foreclosure? Should you?
Housing experts say buying a property in that has been foreclosed on is complicated.
There are stages
- banks or governments taking back the home
Knowing the property’s circumstances is crucial.
The multiple listing service will show properties in foreclosure.