Eyal Leeder, MBA’s Post

Foreclosure Update in the US: Why Everyone Got It Wrong 🏠📉 There's been a lot of chatter in the real estate world about a looming foreclosure crisis and potential housing market crash. But is this really the case?🤔 Let's dive into the data and see what's actually happening. What is a Foreclosure? 📜 A foreclosure is the process where a lender takes control of a property when the borrower defaults on their mortgage. This involves several legal steps and can vary by state. The 2008 Crash: A Lesson Learned 📉 Many investors recall the 2008 financial crisis, where a surge in foreclosures led to a massive decline in home values. This memory has made us cautious about any signs of increasing foreclosures today. Cooling the Housing Market 🏡❄️ An increase in foreclosures could flood the market with distressed properties, potentially driving down home prices. That's why monitoring foreclosure trends is crucial. 2024 Foreclosure Data: The Surprising Reality 📊 Contrary to popular belief, foreclosure activity is actually down year-over-year! According to ATTOM Data Solutions, there were about 177,000 properties with foreclosure filings in the first half of 2024, down from 185,000 in the same period of 2023. Historically, these figures are low. At the peak of the crisis in 2010, there were nearly 2 million filings in a year. Even in 2018, numbers were double what we see today. Regional Differences 🗺️ While national data shows a decline, some states like the Dakotas, Kentucky, and Massachusetts have seen increases. However, the highest foreclosure rates are in New Jersey, Illinois, Florida, Nevada, and South Carolina. Why Aren't Foreclosures Rising? 🔍 Several reasons: Stricter Lending Standards 🏦: Post-2008 policies led to higher quality loans and borrowers with better credit scores. Government Interventions 🏛️: Programs like mortgage forbearance during COVID-19 provided relief. Bank Strategies 🏢: Banks have developed tools to help homeowners avoid foreclosure. Non-Housing Debt 📈: Rising delinquencies in credit card and auto loans, but not in mortgages. The Bottom Line ✅ Despite the hype, the data shows that a foreclosure crisis is not imminent. American homeowners are in a strong position, which is great news for the housing market and economy. Stay informed and happy investing! 💼🏡 #RealEstate #Foreclosure #HousingMarket #Investing #DataAnalysis #EconomicUpdate

FORECLOSURE 'STARTS' TICK UPWARD IN MAY. *SEE TOP RANKED BREAKDOWN BELOW. A May 2024 Foreclosure Market Report found that there were a total of 32,621 U.S. properties with foreclosure filings during the month—default notices, scheduled auctions, or bank repossessions—up 3% from April 2024, but down 7% from a year ago. -Increases in delinquencies and defaults are generally tied to the state of the nation’s employment situation. *The regional breakdown* *Nationwide, one in every 4,320 housing units had a foreclosure filing in May 2024. States reporting the highest foreclosure rates were: New Jersey (one in every 1,939 housing units with a foreclosure filing); Illinois (one in every 2,362 housing units); Delaware (one in every 2,595 housing units); Connecticut (one in every 2,600 housing units); and Florida (one in every 2,638 housing units). *Among the 224 metropolitan statistical areas (MSAs) with a population of at least 200,000, those with the highest foreclosure rates in May 2024 were: Longview, Texas (one in every 1,162 housing units with a foreclosure filing); Trenton, New Jersey (one in every 1,471 housing units); Atlantic City, New Jersey (one in every 1,569 housing units); Lakeland, Florida (one in every 1,584 housing units); and Bakersfield, California (one in every 1,685 housing units). *Those metropolitan areas with a population greater than one million with the worst foreclosure rates in May 2024 were reported in: Chicago (one in every 2,015 housing units); Philadelphia (one in every 2,143 housing units); Riverside, California (one in every 2,216 housing units); Jacksonville, Florida (one in every 2,267 housing units); and Las Vegas (one in every 2,361 housing units). *Lenders started the foreclosure process on 22,385 U.S. properties in May 2024, up 3% from last month, but down 4% year-over-year. States that reported the greatest number of foreclosure starts in May 2024 included: Florida (2,750 foreclosure starts); Texas (2,560 foreclosure starts); California (2,370 foreclosure starts); Illinois (1,427 foreclosure starts); and New Jersey (1,219 foreclosure starts). *The major metropolitan areas with a population greater than one million that had the greatest number of foreclosure starts in May 2024 included: New York, New York (1,447 foreclosure starts); Chicago (1,272 foreclosure starts); Houston (915 foreclosure starts); Miami, Florida (750 foreclosure starts); Philadelphia (713 foreclosure starts). *Lenders repossessed 2,879 U.S. properties through completed foreclosures (REOs) in May 2024, down 1% from last month and down 28% year-over-year. States that reported the greatest number of REOs in May 2024 included: California (254 REOs); Illinois (254 REOs); Pennsylvania (238 REOs); Ohio (177 REOs); and Texas (167 REOs). READ MORE https://lnkd.in/d9WdEFs5

Current Real Estate Trends in the Foreclosure Market: What You Need to Know In recent times, the real estate foreclosure market has experienced significant shifts, influenced by economic conditions, policy changes, and market dynamics. Understanding these trends is crucial for both homeowners and investors. Recent Trends: 1. Increase in Foreclosure Rates: - Recent data indicates an uptick in foreclosure rates. This rise is attributed to the expiration of mortgage forbearance programs and the economic impact of the pandemic. - Statistic: According to RealtyTrac, foreclosure filings were up by 15% in the last quarter. 2. Geographical Variations: - Foreclosure rates vary significantly across different regions. States like Florida, California, and New York have seen higher rates than others. - Insight: Investors should carefully analyze regional data before making decisions. 3. Market Opportunities: - The increase in foreclosures presents opportunities for investors to acquire properties at lower prices. - Advice: Investors should conduct thorough due diligence to assess the potential return on investment. 4. Government Interventions: - Various government programs aim to assist struggling homeowners, impacting the foreclosure landscape. - Example: The Homeowner Assistance Fund

Finding reliable data on the likelihood of certain residential properties falling into foreclosure is challenging and even more difficult to analyze. Read ATTOM's latest post to learn more about how our unique propensity to default data and scoring system can help you uncover the probability that a home will go into foreclosure.

We're thrilled about this report's depth! It goes beyond just state and county foreclosure data, diving into zip code specifics – a treasure trove for real estate wholesalers, buyers, and investors alike. And here's a crucial insight: unlike past cycles, a housing price crash or foreclosure crisis isn't looming. What's truly concerning? The yield on 10-year treasuries, impacting mortgage rates. Agents, take note: unchecked, this could exacerbate our already pressing housing affordability challenges. #RealEstateInsights #MarketTrends

The Federal Housing Finance Agency's Q2 2023 report has delivered some important data on foreclosure prevention. Fannie Mae and Freddie Mac have completed 47,370 foreclosure prevention actions in Q2, with loan modifications reducing monthly payments by more than 20% for a third of borrowers. Notably, refinances have increased and serious delinquency rates have declined. However, with interest rates significantly higher than before, the question arises: what will happen to these foreclosure prevention measures? In a declining interest rate environment, it's more feasible to lower payments to borrowers or incentivize them to refinance. But when rates are twice as high, these options become more constrained, raising concerns about the efficacy of current foreclosure prevention actions. Higher interest rates will likely affect the feasibility of modifications, and could potentially lead to higher delinquency rates in an already precarious situation. The landscape for foreclosure prevention is evolving, and as a fund manager in the space, we have already adapted our strategies to navigate the effects of higher interest rates on loan modifications and refinancing options. #InterestRates #ForeclosurePrevention #LoanModifications #DelinquencyRates #DebtInvestment

Foreclosure rates showed a significant decline in August 2024. According to recent data from ATTOM, foreclosure filings dropped 5.3% in August compared to the previous month and are down 11% from August 2023. This continues a trend of foreclosure activity remaining well below pre-pandemic levels. Key Stats: 📉 Foreclosure starts down 5.1% from July and 9.4% year-over-year 🔻 Completed foreclosures fell 12% month-over-month and 13.9% from August 2023 🏚️ 1 in every 4,662 homes had a foreclosure filing in August 2024 The foreclosure market remains far healthier than pre-pandemic levels, with significant decreases compared to 2019 averages. For more detailed insights into foreclosure trends and what’s driving these changes, check out our blog post: https://lnkd.in/eXyTtq9w #Foreclosure #RealEstate #HousingMarket #Homeowners #FinancialTrends #MarketInsights #ATTOM

Last month, foreclosure starts were up 4% compared to March of 2023, while foreclosure completions were down 44% in the same comparison. Is the market making a slow transition, or will increased homeowner protections keep foreclosure levels suppressed indefinitely? Learn more: https://lnkd.in/ePYyHWW8

Despite recent data indicating a slight increase in foreclosure filings, experts unanimously dismiss the possibility of a significant foreclosure crisis akin to the one witnessed in 2008. While some headlines may highlight these minor upticks, the broader context reveals that foreclosure numbers remain considerably lower than those seen in typical housing market conditions. This perspective underscores the resilience and stability of today's housing market. Click the link below to read more👇: https://loom.ly/U2H11Zo #readmore #foreclosurefilings #housingmarket #data #increase #foreclosure #experts #crisis #headline #housing #perspective #today #read

According to Attom’s first-quarter U.S. Foreclosure Market Report, foreclosure activity increased quarterly, but remains essentially flat year over year. “Q1 2024’s foreclosure data reveals a market in transition, with slight increases in filings and starts, alongside a notable decrease in REO properties,” Rob Barber, CEO at Attom, said. “While foreclosures remain relatively stable, we’re closely monitoring these trends. Homeowners continue to hold significant equity, contributing to a persistently hot housing market.”   Delaware had the highest foreclosure rate in the nation during the first quarter; one in every 894 housing units in the First State had a foreclosure filing. New Jersey (one in every 919 units), South Carolina (one in every 929), Nevada (one in every 961) and Florida (one in every 973) rounded out the top five. Illinois had the highest foreclosure rate among states in March, with one filing in every 2,548 units. #foreclosure #realestate #realtor #mortgage #househunting #investment #realestateagent #broker #listing #home #realty #property