What Are You Facing Foreclosure and is it on the Rise?

Foreclosure can be caused by a variety of reasons. According to a report by Ami House Buyers, some of the most common reasons for foreclosure include:

1. Unemployment: Loss of a job can significantly impact a homeowner’s ability to keep up with mortgage payments. While forbearances and loan modifications can offer temporary relief, they may not be sufficient for long-term financial recovery.
2. Serious Damage to Property: Events like natural disasters or house fires can lead to major home damage. Homeowners without adequate insurance coverage may face financial difficulties in repairs, increasing the risk of foreclosure.
3. Increased Home Expenses: Over time, expenses such as property taxes, insurance, and HOA dues can rise, potentially outpacing a homeowner’s budget. This can put homeowners at risk of foreclosure, especially if their income does not increase proportionally.
4. Inadequate Budgeting for Homeownership: Many homeowners underestimate the total cost of owning a home, including maintenance and repairs. This lack of budgeting can lead to financial strain and the possibility of foreclosure if they cannot manage the accumulating expenses.

It’s important to note that these are just a few of the many reasons why a homeowner may face foreclosure. If you are facing foreclosure, it’s best to remain calm and consider your options. You may want to consult with a financial advisor or a housing counselor to help you navigate the process.

According to a report by ATTOM, a leading curator of land, property, and real estate data, foreclosure filings in the United States increased by 10% from 2022 to 2023, with 357,062 properties being reported with foreclosure filings. However, the report also states that the foreclosure activity is still below pre-pandemic levels. In fact, foreclosure filings in 2023 were down 28% from 2019, before the pandemic shook up the market.

December 2023 Foreclosure Activity High-Level Takeaways

1. Nationwide in December 2023, one in every 4,606 properties had a foreclosure filing.
2. States with the highest foreclosure rates in December 2023 were Maryland (one in every 2,570 housing units with a foreclosure filing); Connecticut (one in every 2,660 housing units); New Jersey (one in every 2,775 housing units); Ohio (one in every 2,819 housing units); and Delaware (one in every 2,967 housing units).
3. 20,490 U.S. properties started the foreclosure process in December 2023, down 8 percent from the previous month and down 3 percent from a year ago.
4. Lenders completed the foreclosure process on 3,503 U.S. properties in December 2023, up 37 percent from the previous month but down 4 percent from a year ago.