Even with the steady rise in foreclosures that resulted after the expiration of the Covid-19 foreclosure moratorium in September 2021, foreclosures remain below pre-pandemic levels. In 2022, foreclosures were down 34% compared to 2019, according to ATTOM Data’s Year-End 2022 U.S. Foreclosure Market Report.
It seems clear that government and mortgage industry efforts during the pandemic, coupled with a strong economy, have helped prevent millions of unnecessary foreclosures. For February 2023, foreclosures were up 18% from a year ago and down 3% between January and February.
A key difference now compared to the 2008 housing crisis is that many homeowners, and even those struggling to make payments, have had a large boost to their home values in recent years. That means they still have equity in their homes and are not underwater—when you owe more than the house is worth.
It looks like borrowers in foreclosure are leveraging the positive equity in their homes by refinancing their home or selling for a profit. It seems likely that this is a trend that will continue in 2023.
As far as if we will see an increase in foreclosures in 2023, it seems unlikely since the job market has been steady so far, we have different loan products in comparison to the 2008 crash and equity is high. Don’t hold your breath for a crash or housing recession this year!
Recognized as one of the most dynamic, high performing real estate agents in the Chicagoland area, Frank Campobasso is in a league of his own having been featured as the cover agent for an international Real Estate Magazine, Multiple Newspaper Articles and on Real Estate Radio Talk Shows. He specializes in marketing and selling listings for top dollar, negotiation techniques, researching and finding properties that otherwise wouldn’t exist on the market for his buyers. Licensed in 2005, Frank has been selling Real Estate for almost two decades. To Reach Frank, please call 773-425-6265.