Foreclosures decrease in April as moratorium continues

The number of properties subject to foreclosure declarations reached 11,810 in April, down 1% month-over-month and 17% year-over-year, according to a recent study RealtyTrac and ATTOM data solutions.

May marks the 14th month of the federal government‘s moratorium on foreclosures and evictions.

The states with the highest foreclosure rates in April were Delaware (one in 5,700 homes with a foreclosure filing), Nevada (one in 5,738), Illinois (one in 5,890), Florida (one in 6,375 ) and New Jersey (one in 6,390). The metropolitan areas with a population of over one million with the highest foreclosure rates were Cleveland, Ohio (one in 3,550), Las Vegas (one in 4,838), Riverside, California (one in 5,020), Jacksonville, Florida (one in every 5,243) and Chicago (one in 5,324).

The states with at least 100 housing starts in April that saw the largest monthly increase in housing starts are Washington (up 76%), New York (up 53%), Kentucky (up 47%), %), Alabama (up 28%) and Indiana (up 26%).

Rick Sharga, executive vice president of RealtyTrac, said most of the current foreclosure activity consists of vacant and abandoned properties, or business loans – which often don’t have the same protections as loans on residential properties.

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“With the federal government’s moratorium on foreclosures and evictions, coupled with the CARES Act mortgage forbearance program, the government and the mortgage services industry have worked together exceptionally well to prevent millions of unnecessary foreclosures,” Sharga said. “Because of these programs and the nearly 90% success rate of borrowers resuming their mortgage payments upon release from forbearance, a large influx of foreclosures when the programs expire seems very, very unlikely.”

the Consumer Financial Protection Bureau (CFPB) published a notice of proposed regulation in early April, which would amend By-law X to provide for a special pre-foreclosure review period prohibiting directors from starting foreclosures before December 31, 2021. Under current CFPB foreclosure rules, a borrower must be in delay of 120 days before the foreclosure process can begin.

The Bureau said that nearly 2.1 million forbearance households have passed the 90-day delinquency mark and expressed concern that these homeowners could be immediately transferred to the foreclosure process once their abstention period expired.

According to the Bureau, although many of the protections in the CARES Act only apply to federally guaranteed mortgages, the Bureau seeks to set a general standard across the industry so that all homeowners benefit. similar protections regardless of who owns or manages the loan. . The CFPB said it would also cover the private mortgage sector which currently accounts for 30% of the market.

“The nation has endured more than a year of a deadly pandemic and appalling economic crisis. We must not lose sight of the dangers that many consumers still face, ”said Dave Uejio, Acting Director of CFPB. “Millions of families risk losing their homes due to foreclosure in the coming months, even as the country reopens.

About Teresa G. Wilson

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