How does “seasonality” affect foreclosure rates?

Owned by REO Bankatom datahas released its latest version Foreclosure Market Report A July 2022 survey found a total of 30,358 properties that had been filed for some form of foreclosure.

Notices of default, scheduled auctions and bank remands were also down 4% month-on-month, but up 143% from the same period last year.

Rick Sharga, EVP of Market Intelligence at ATTOM, said: “For eight of the past ten years, foreclosure activity in the third quarter was lower than in the previous quarter, suggesting a return to a more normal seasonal pattern of delinquencies and defaults.”

Overall, 1 in 4,628 housing units nationwide had received a foreclosure application. The highest rates were found in Delaware (1 in every 2,127 units). Illinois (1 in 2,334). New Jersey (1 in 2,564); Nevada (1 in 2,609); South Carolina (1 in 2,976).

However, foreclosure initiations increased on a monthly basis in 21 states. The lender said in July he began foreclosure proceedings on 21,428 properties. That’s a 4% drop for him from last month, but a 226% increase from the same period last year.

States with monthly increases in foreclosure initiations include: Michigan (up 42%). Massachusetts (up 39%); Iowa (up 26%); Wisconsin (up 25%); and Indiana (up 22%).

“Several states appear to have yet to catch up on processing foreclosures on loans that were severely delinquent prior to the pandemic, which explains the sharp year-on-year surge in foreclosure initiations. ” added Sharga. “However, early-stage delinquencies continue to be lower than normal, so it will be interesting to see if foreclosure initiations are significantly reduced once these older loans re-enter the foreclosure process.”

As lenders remanded 3,068 properties through complete foreclosures (REOs) in July 2022, the number of completed foreclosures was also down 5% from the previous month, down 5% from last month, and up 27% from last year.

click here View the entire report.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *