New Data Predicts an Influx of Foreclosures
Originally Published: 28 Feb., 2020
A recent report from Auction.com surveyed more than 40 of the nation’s largest bank and nonbank default servicing clients, along with representatives from government agencies involved in servicing and disposition of distressed properties.
In the report, 2020 Default Servicing Industry Insights, two-thirds of experts surveyed expect their foreclosure and real estate owned (REO) properties inflow to increase this year. It’s expected that the increase will affect five of seven U.S. regions – all but Central and North Central areas.
The report also revealed 65 percent of respondents expect an increase in bank-owned foreclosure and REO inflow. Additionally, and perhaps most notably, 68 percent of responders plan to increase their loss mitigation actions.
Daren Blomquist, VP of market economics at Auction.com said;
“There is historical precedent for an increase in foreclosures without a national economic or housing downturn.”
What It Means
When a homeowner fails to pay their mortgage, lenders should be prepared to evaluate the foreclosure and assess their options to recover the loss. As a lender, it’s vital to understand the foreclosure process and all of its alternatives. Although complicated, understanding the options, laws, and timelines could help maximize recovery for your organization.
With a foreclosure boom on the horizon, it’s important to be properly equipped on the subject.
“More than three in four respondents expect foreclosure and REO inflow to increase in the Northeast, the most of any region.”