The first six months of the year saw a significant increase in foreclosure filings in the United States. This is consistent with concerns about inflation pressures on homeowners.
A national tracking company recently reported about 165,000 US properties with foreclosure claims. That’s more than double what he did for the same time last year. The increase follows the end of the pandemic moratorium and tolerance program, but analysts say soaring consumer costs won’t help.
Joe Mahon, regional outreach director at the Federal Reserve Bank of Minneapolis, said it affects borrowers in many ways.
“That forces people to cut the more discretionary part of the budget,” Mahon said. “Low-income people don’t necessarily have a lot of discretionary spending, so they don’t necessarily have a lot of room to cut.”
Mahon said wages have not kept up with inflation, even though they have risen sharply, undermining the chances of getting caught up in budget concerns such as late payments.
Statewide, the Minnesota Homeowner Center partners with about 20 organizations that provide free financial counseling to help you avoid foreclosure.
Gas prices are trending downward, but are still higher than they were a year ago, and homeowners may also be reeling from higher prices for other energies, such as natural gas and home heating costs, he said. did.
“Unless natural gas and kerosene prices reverse dramatically, heating costs are expected to remain high this winter,” Mahon warned. “It’s one of those things that can cut spending that much.”
When it comes to foreclosure filings, Minnesota is in the middle pack among states for the first half of 2022, during which time real estate data firm ATTOM said more than 2,100 properties around the state have been foreclosed.