The Latest Foreclosure Data May Be a Bit Misleading
Filed under: Mortgage News
Black Night issued the month-over-month foreclosure data. I’ve heard a lot of people talking about this topic: the wave of foreclosures that are going to be coming. The current reality and good news are that according to the numbers, foreclosures appear to be going down.
Month-Over-Month Foreclosures: August to September
From August data to September data, we saw a change in 90-day delinquencies. It was actually a decrease of 9% month-over-month. These numbers are volatile – it can jump all over the place.
One headline that was misleading: “a 40% increase in foreclosures year-over-year.” But what everyone needs to remember is that there was a foreclosure moratorium last year. Comparing it to last year isn’t a fair comparison.
I don’t understand how anyone could have lost their house last year due to the moratorium. But apparently it happened to some people. I guess is makes sense since we went from zero, which means we are up significantly from that.
Look at the Pre-Pandemic Numbers
The September data is still showing that we are less than 50% of the pre-pandemic numbers – which I would contend are the more important numbers.
This wave of foreclosures that people are talking about: doesn’t appear to be coming to fruition. Obviously, it is something that I will be paying close attention to.
At least for now, this foreclosure wave that so many people are talking about has not materialized. We’ll see what happens, but we are in good shape for the moment.
Be Careful About Your News Sources
Also: be careful about which headlines you are looking at. Make sure the news stories you are reading are aligned with trustworthy data.
I’d love to hear any different perspectives out there – reach out if there are other things that you are seeing.
If you ever have questions about the current real estate market, or options to get a mortgage, then reach out to Bill Provost at Franklin Loan Center in Temecula. (425) 241-1922
