First, let me say that our local real estate market is stronger than most U.S cities, so this is more nationwide.
We haven’t talked about foreclosures in a while because the real estate market has been so hot. If someone was in financial trouble, they could easily sell for a profit. But as the market cools and prices in some areas of the country start to come down, many Americans may find themselves upside down where they owe more than their home is worth. The real estate market had never seen prices rise so quickly, and now the same can be said about the rise in interest rates.
In January, you could have gotten a 30-year fixed loan for 3.35%. Now, in October, that rate is 6.8%! This quick rise in interest rates was due to the fed raising the fed rate to combat inflation. If inflation doesn’t start to come down, you can expect higher rates in the future which in turn could bring prices down and leave people in financial trouble.
LendingTree examined the most recent statistics in a Survey by the Census Bureau conducted from July 27 to August 8, 2022, to discover how many Americans 18 and older are immediately at risk of losing their homes to foreclosure.
Only 3.71% of adults nationwide who reside in owner-occupied homes are behind on their mortgage payments. Of those who are behind on their mortgages, 19.62% of Americans say they are somewhat or very likely to abandon their house due to foreclosure in the upcoming two months.
Which states are highly at risk of losing homes due to foreclosures?
Will foreclosures rise?