After a spike in September, is the United States about to see a rise in foreclosures?
As measures designed to help homeowners stay in their homes during the COVID-19 pandemic come to a conclusion, foreclosures in the United States are on the rise.
ATTOM, a mortgage data agency, presented a new report on foreclosures for the third quarter of 2021 on Thursday. It revealed that there are already 45,517 homes in the United States with foreclosure files on record, up 34% from Q2 2021 and 68% from the same period last year. In September alone, ATTOM discovered 19,609 filings, a 24 percent increase over August and a stunning 102 percent increase over September 2020.
Since the outbreak, the US government and business sector have implemented a number of measures aimed at reducing the number of foreclosures.
This was done to keep people safe at the peak of infections last year, but as the epidemic progressed, delinquencies on mortgage payments and other loans began to rise.
According to ATTOM, one out of every 7,008 properties in the United States had a foreclosure filing as of today. Florida, Illinois, Delaware, Nevada, and New Jersey were listed as the states with the highest concentration of foreclosures.
Despite some concerning rises in the number of homes already in foreclosure, this was to be expected when the housing market returns to normal. As the economy begins to recover, the US government has started reducing the amount of support programs it has implemented to address COVID-19.
In September, the eviction moratorium put in place by former President Donald Trump’s administration came to an end. President Joe Biden tried to save it, but the courts sided with the landlords, who pushed their disputes all the way to the Supreme Court of the United States, where they won.
Many people have also had difficulty accessing rental assistance programs that would have assisted them in making payments, as several states have been slow to distribute monies approved by Congress in March.
Despite the fact that the number of foreclosures has increased, it is still significantly below pre-pandemic levels. According to Rick Sharga, executive vice president of RealtyTrac, which is owned by ATTOM, the current rate of foreclosures will still put the amount of foreclosures in 2021 lower than in the years before to the epidemic.
“Foreclosure actions in September were over 70% fewer than they were before the COVID-19 outbreak in September of 2019, and foreclosure activity in Q3 was 60% lower.” The Washington Newsday Brief News is a daily newspaper published in Washington, D.C.