How Will Future Foreclosures Affect the Housing Market in 2022?
The scale of the upcoming foreclosure rise may have a cause and effect on the Florida home market. This will be determined by how lenders handle troubled borrowers who have fallen behind on their payments.
According to a recent study from ATTOM Solutions, after the moratorium was removed in July 2021, foreclosure activity has increased. According to the research, default notices, bank repossessions, and planned auctions increased by 34% in the third quarter of this year. Following an 18-month foreclosure moratorium, means that the upswing will most certainly continue through 2022.
Foreclosure statistics are quite likely to climb over the next six months to a year, with the increase ranging from a tick to a torrent according to Todd Teta, chief product officer at ATTOM Solutions. According to Teta, foreclosures would most likely occur first in impoverished communities, where homeowners are more likely to be in financial hardship and have less money to negotiate with lenders.
Florida was one of the states with the highest foreclosure rates in Q3, with one out of every 2,000 residences in foreclosure. During the third quarter of 2021, Florida experienced a high rate of completed foreclosures, providing tremendous prospects for investors in 2022. More foreclosures may improve inventory, but not when compared to the demand that is maintaining property prices in the state at record highs.