{"id":8118,"date":"2023-08-16T10:30:00","date_gmt":"2023-08-16T10:30:00","guid":{"rendered":"https:\/\/thezakariagroup.com\/dont-expect-a-flood-of-foreclosures\/"},"modified":"2023-08-16T10:30:00","modified_gmt":"2023-08-16T10:30:00","slug":"dont-expect-a-flood-of-foreclosures","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/dont-expect-a-flood-of-foreclosures\/","title":{"rendered":"Don\u2019t Expect a Flood of Foreclosures"},"content":{"rendered":"
\"Don\u2019t<\/p>\n

The rising cost of just about everything from groceries to gas right now is leading to speculation that more people won\u2019t be able to afford their mortgage payments. And that\u2019s creating concern that a lot of foreclosures are on the horizon. While it\u2019s true that foreclosure filings<\/a> have gone up a bit compared to last year, experts say a flood of foreclosures isn\u2019t coming.<\/p>\n

Take it from Bill McBride of Calculated Risk<\/em>. McBride is an expert on the housing market, and after closely following the data and market environment leading up to the crash, he was able to see the foreclosures coming in 2008. With the same careful eye and analysis, he has a different take<\/a> on what\u2019s ahead in the current market:<\/p>\n

\u201c<\/em>There will not be a foreclosure crisis this time.<\/em><\/strong>\u201d<\/em><\/p><\/blockquote>\n

Let\u2019s look at why another flood is so unlikely.<\/p>\n

There Aren\u2019t Many Homeowners Who Are Seriously Behind on Their Mortgage Payments<\/strong><\/h4>\n

One of the main reasons there were so many foreclosures during the last housing crash was because relaxed lending standards made it easy for people to take out mortgages, even if they couldn’t show that they\u2019d be able to pay them back. At that time, lenders weren\u2019t being very strict when assessing applicant credit scores, income levels, employment status, and debt-to-income ratio.<\/p>\n

But now, lending standards have tightened, leading to more qualified buyers who can afford to make their mortgage payments. And data<\/a> from Freddie Mac<\/em><\/a> and Fannie Mae<\/em><\/a> shows the number of homeowners who are seriously behind on their mortgage payments is declining (see graph below<\/em>):<\/p>\n

<\/a>Molly Boese, Principal Economist at CoreLogic<\/em>, explains<\/a> just how few homeowners are struggling to make their mortgage payments:<\/p>\n

\u201c<\/em>May\u2019s overall mortgage delinquency rate matched the all-time low, and serious delinquencies followed suit. <\/em><\/strong>Furthermore, the rate of mortgages that were six months or more past due, a measure that ballooned in 2021, has receded to a level last observed in March 2020.\u201d<\/em><\/p><\/blockquote>\n

Before there can be a significant rise in foreclosures, the number of people who can\u2019t make their mortgage payments would need to rise. Since so many buyers are making their payments today, a wave of foreclosures isn\u2019t likely.<\/p>\n

Bottom Line<\/h3>\n

If you\u2019re worried about a potential flood of foreclosures, know there\u2019s nothing in the data today to suggest that\u2019ll happen. In fact, qualified buyers are making their mortgage payments at a very high rate.<\/p>\n<\/div>\n

Powered by WPeMatico<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

The rising cost of just about everything from groceries to gas right now is leading to speculation that more people won\u2019t be able to afford their mortgage payments. And that\u2019s creating concern that a lot of foreclosures are on the horizon. While it\u2019s true that foreclosure filings have gone up a bit compared to last […]<\/p>\n","protected":false},"author":101010,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[110,99,100,877,102,884],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"\nDon\u2019t Expect a Flood of Foreclosures - The Zakaria Group<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thezakariagroup.com\/dont-expect-a-flood-of-foreclosures\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Don\u2019t Expect a Flood of Foreclosures - The Zakaria Group\" \/>\n<meta property=\"og:description\" content=\"The rising cost of just about everything from groceries to gas right now is leading to speculation that more people won\u2019t be able to afford their mortgage payments. 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