Which way are home foreclosures really going?

Today in Mortgages

Welcome back, Dreammakers! Today, on "Today in Mortgages," we're diving into the world of mortgage and real estate news to find out what's real, what's just hype, and what you should really be paying attention to. I'm feeling a little upside down in this world, but Rich is here to steer the ship, thank goodness. We've got a hot topic today - home foreclosures. Are they on the rise or on the decline? Let's find out!

Rich sheds light on the confusion sparked by recent news that home foreclosures are on the rise, despite previous episodes talking about record-low delinquencies. The key here is that many of the foreclosures happening now were already in the pipeline, thanks to a lengthy foreclosure process that takes an average of 1,200 days.

In 2019, foreclosure proceedings were at 0.36% of all U.S. households, which isn't too alarming. In 2022, that number dropped to 0.23%, showing a positive trend. The big foreclosure numbers were seen back in 2010 when a whopping 2.23% of U.S. households were in foreclosure. Foreclosures are typically a last resort for lenders, as it's a costly process that no one profits from.

Today, foreclosures are more likely to occur due to borrower fraud or misrepresentation. It's also essential to remember that catching up on delayed foreclosures from previous years can make the numbers seem inflated. In essence, the 34% increase in foreclosures from a year ago is due to these backlogged cases, not necessarily a fresh crisis.

So, don't panic! The majority of homeowners are in a stable position with lots of equity and secure jobs. Most of what's being talked about regarding foreclosures is hype. Rich's final thoughts? Mostly hype! Thanks for keeping us right side up, Rich.

If you found this episode informative, consider joining Rich Inside the Network for daily coaching and more resources to stay smart in the mortgage world. For now, thanks for tuning in to "Today in Mortgages." We appreciate you, and we'll catch you next time!
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