Mortgage foreclosures rise as moratorium ends: Options for homeowners who might be at risk


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According to a new report from ATTOM, a mortgage data company and parent company of foreclosure marketplace RealtyTrack, foreclosure activity could pick up slightly over the next three months after rising in August.


Foreclosure filings — including default notices, scheduled auctions and bank repos — rose 27% from July to 15,838 filings in August. August 2021 US Foreclosure Market Report. This is 60% more than last year.

Rick Sharga, executive vice president of RealtyTrac, said, “As expected, foreclosure activity increased as the government’s foreclosure moratorium expired, but that doesn’t mean we should expect to see an influx of distressed properties hitting the market.” needed.” “We will continue to see an increase in foreclosure activity over the next three months as loans that defaulted prior to the moratorium re-entered the foreclosure pipeline, and states began to hold on to months of foreclosure filings that were not processed. during the pandemic.”

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If you’re at risk of going into foreclosure or struggling to make mortgage payments, consider taking out a mortgage refinance to help lower your monthly payments while interest rates remain at record lows. Visit Credible to see your personalized rate And compare how much you can save.

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CFPB Rule Still Preventing Foreclosure

Residential Foreclosures Will End, Despite Minor Increases When Foreclosure and Eviction Moratoriums End The rest remains suppressed through the year, Sharga explained.

“It is likely that foreclosures will remain below normal levels at least until the end of the year,” he said.

That’s because the Biden administration, through the Consumer Financial Protection Bureau (CFPB) implemented a new servicing rule that would prevent most foreclosures by 2022. The rule, which went into effect in late August, barred mortgage servicers from offering loans. Modification plan to increase monthly payments for homeowners emerging from their forbearance program. This prevents them from extending the loan term to more than 480 months and allows them to add up on missed payments to save homeowners from falling into delinquency.

The CFPB will continue to add additional restrictions on foreclosures through the remainder of 2022 to protect homeowners. If you are interested in taking out a mortgage refinance, visit Reliable to compare several mortgage lenders and choose the best rate for you.

Here’s what the Biden administration’s new mortgage service rules mean for you

Foreclosure Avoidance Options for Homeowners

Currently, the CFPB’s new servicing rule creates more options for homeowners to avoid foreclosure. If you’re looking for ways to avoid foreclosure and are stuck on your monthly mortgage payments too, here are some places to start:

loan modification

Under the new servicing rule, mortgage servicers must work with homeowners to get them back on track with their monthly payments. Through loan modification, borrowers can lower their costs by lowering their interest rates or changing loan terms. Homeowners can reach out to their loan servicer to discuss their options.

mortgage refinance

Refinancing options can also help reduce monthly payments with today’s sub-3% interest rates. New options have also been made available by the Federal Housing Finance Agency (FHFA) through Fannie Mae and Freddie Mac for low-income borrowers or homeowners who missed payments due to hardship related to COVID-19. Visit Credible to Prequalify in Minutes without affecting your credit score.

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sell your house

While this is not an ideal option, homeowners who cannot use other methods to begin paying their mortgage payments may consider selling their homes instead of going into foreclosure. Home prices are rising at record rates and can leave homeowners with multiple profit levels if they choose to sell their home.

If you are interested in looking at your mortgage refinance options, contact Credible to speak with a home loan specialist and get all your questions answered.

You have questions related to finance, but don’t know what to ask? Email a trusted money expert [email protected] And your question can be answered by credible in our Money Expert column.

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