Since the start of the COVID-19 pandemic in 2020, and subsequent government backed loan moratoriums that delayed foreclosures for homeowners, there has been much discussion on what effects we may see when foreclosures were allowed to begin again. Many predicted there would be a wave of distressed properties hitting the market, while many more suggested the moratoriums wouldn’t just “delay the inevitable” but would actually help homeowners get back on track. At least, they would help enough that there wouldn’t be some tidal wave of foreclosures once assistance ended.
The single-family foreclosure moratorium was set to expire July 31, 2021, and saw an extension of its protection with an eviction moratorium until September 30, 2021. Some states also saw extensions of foreclosure restrictions until December 2021. The extension was put in place specifically for homes in foreclosure to prevent families from being displaced at such a difficult time. So, now that eviction and foreclosure moratoria have ended, how do the numbers look?
Foreclosures on homes surged in January, but that’s no surprise.
It’s important to note that while foreclosures certainly did see a spike in January of this year, they are still well below pre-pandemic numbers. This spike is certainly no surprise, as many (if not all) industry professionals predicted its arrival and it certainly makes sense given the number of homeowners that have exited forbearance. With the final extension ending in December, it stands to reason numbers would rise in January.
Could this mean an increase in inventory for 2022?
The focus has been on bidding wars and refinancing over the past two years but among rising mortgage rates, a return of seasonality to the market, and the end of mortgage forbearances, it’s time for real estate professionals to shift focus to families that need to sell their homes. It would stand to reason that this shift will subsequently cause an increase in inventory for prospective homebuyers this year, which means we could be seeing a return to a less volatile market. Could 2022 be the year we see a return to normal? Will homeowners that have been waiting to upgrade, or scale down, their homes finally see their window opening and add their home to the inventory pool?
Will your team step up to the challenge?
Homeowners are in need of qualified real estate professionals to help them through this difficult process. As the focus shifts to those in need of selling to avoid foreclosure, your team needs to be ready to step up to the plate fast. This is where data powered by The Warren Group comes in. Our Data Solutions offer access to foreclosure and pre-foreclosure data as soon as it’s available, giving you the chance to be the first to reach out to families that need your help. If your team is ready to step up and be there first, reach out to one of our data specialists today and ask about a data package that fits your needs.