Foreclosure rates creep up, as expected

Monthly increase signals possibility of continued heightened activity. The US housing market saw heightened foreclosure activity in May, as widely anticipated, according to ATTOM’s latest report. Foreclosure filings (default notices, scheduled auctions, or bank repossessions) surged 7% from April and were up 14% from a year ago to 35,196 properties across the country. Of that figure, lenders repossessed 4,020 properties through completed foreclosures (REOs) in May, a 38% increase from the previous month and up 41% from May 2022. “The recent increase in foreclosure filings nationwide indicates a trend that has been observed throughout the year and what we have expected to occur,” said Rob Barber, CEO at ATTOM. “This upward trajectory suggests the possibility of continued heightened activity, and with foreclosure completions seeing the largest monthly increase this yea

Direct mortgage lender forecloses on 3,200 units

Big default shows loan pressures as rates rise. A recent foreclosure of four Houston apartment complexes highlights the impact of rising interest rates on the multitrillion-dollar rental-housing market.? Applesway Investment Group, which borrowed nearly $230 million to acquire the buildings during the pandemic, defaulted on its loans, leading Arbor Realty Trust to foreclose on the properties. New York-based Fundamental Partners purchased the Houston properties for an undisclosed sum. Arbor Realty Trust is a listed specialist multifamily and commercial direct lender based in Uniondale, NY. With a portfolio of around $28 billion, it earns around $115 million a year, and saw nearly $11 billion in originations last year, a drop from its 2021 numbers. With a structured loan book that is 97% floating rate, its clients will be suffering as rates have jumped over the last year.

US foreclosure filings surged 115% in 2022

Report reveals why repossession remains low despite rise in foreclosure activity. Foreclosure filings on US properties in 2022 were up 115% from 2021, according to the year-end 2022 Foreclosure Market Report from ATTOM. Properties with foreclosure filings represented 0.23% of all US housing units, up slightly from 0.11% in 2021 but down from 0.36% in 2019 and a peak of 2.23% in 2010. “Eighteen (18) months after the end of the government’s foreclosure moratorium, and with less than 5% of the 8.4 million borrowers who entered the CARES Act forbearance program remaining, foreclosure activity remains significantly lower than it was prior to the COVID-19 pandemic,” said Rick Sharga, executive vice president of market intelligence at ATTOM. Sharga attributes this to government and mortgage industry efforts during the pandemic, coupled with a strong economy, w

Highest foreclosure activity since March 2020, report shows

Increase coincides with lifting of CFPB restrictions More properties were in foreclosure filings in the US than at any time since the beginning of the COVID pandemic, according to a report by property analytics firm, ATTOM. The January Foreclosure Market Report, compiled together with ATTOM subsidiary RealtyTrac, shows that a total of 23,204 properties were in foreclosure filings, including default notices, scheduled auctions and bank repossessions, representing a significant 139% increase compared to a year ago and by 29% from a month ago. In addition, lenders started the foreclosure process on 11,854 properties last month, up 29% from in December and 126% from a year ago. Foreclosure activity refers to properties with foreclosure filings, namely those that have been taken back by lenders after borrowers fall behind on their mortgage payments. Data typically includes in

US consumer watchdog eyes rules to prevent foreclosures

The Consumer Financial Protection Bureau said Monday it is considering new rules aimed at averting a wave of foreclosures later this year when millions of homeowners are no longer allowed to put off making their mortgage payments. Last year, the federal government suspended foreclosures and evictions for mortgages insured by the Federal Housing Administration as the coronavirus pandemic left millions of people unemployed. Fannie Mae and Freddie Mac did the same for borrowers in single-family homes with loans backed by the two mortgage buyers. The initiatives offered borrowers relief for up to one year and suspended late charges and penalties. As of February, nearly three million US homeowners were behind on their home loans, with about 2.1 million mortgages in forbearance and at least 90 days late, according to the CFPB. If current trends continue, there still may be 1.7 million s

Share of mortgages in foreclosure at historic low

The share of mortgages in some stage of the foreclosure process was at 0.3% in August 2020 – down from 0.4% in August 2019 and the lowest it has been since “at least January 1999,” according to analytics firm CoreLogic. However, the firm also revealed a significant increase in serious delinquency rates – or mortgages that are 90 days or more past due. The share of mortgages in serious delinquency was at 4.3% in August 2020, up 1.3% from the same period last year and the highest it has been since February 2014. August also marked an alarming increase in 150-day past-due loans, reaching a historic high of 1.2%. “Forbearance programs continue to reduce the flow of homes into foreclosure and distressed sales and has been the key to helping many families who have been particularly hard hit by the pandemic,” said Frank Martell, president and chief executive officer of CoreLogic. "Even though foreclosure

Forbearance numbers down, but still 'remarkably high'