Zombie Foreclosures Tick Up As Overall Foreclosure Activity Accelerates

Zombie foreclosures rose 3% from Q1 to Q2 2022, the first increase in a year, as overall foreclosure activity jumped 13%, ATTOM reported. Zombie properties– homes that sit vacant– account for 1.3 million properties in the U.S. That is one in every 76 homes. Among pre-foreclosure properties, 7,569 sit vacant in Q2, meaning that the number of zombie-foreclosure properties rose quarterly by 2.8%. Foreclosures are up 12.7% from Q1 2022 and 15.9% YOY, with 259,166 properties in the process of foreclosure in Q2 2022. This is the third consecutive quarter of increases since the national foreclosure moratorium was lifted in July 2021. “The incidence of zombie-foreclosures tends to be higher in cases where the foreclosure process has dragged on for…

Prices Are Up In Distressed Neighborhoods Due To Soaring HPI And Low Inventory Elsewhere

Home prices rose in Q1 2022 for the majority of Opportunity Zones, with the pace of gains in half of all zones besting quarterly and annual increases across the nation, ATTOM reported. Opportunity Zones are areas targeted for economic improvement, defined in the Tax Act legislation as census tracts in or alongside low-income neighborhoods that meet specific criteria for redevelopment. ATTOM analyzed 5,092 zones in the U.S. that had at least five home sales in Q1 2022. The report found that median single-family home and condo prices increased in 55% of zones between Q4 2021 and Q1 2022. In 50%, prices rose by at least 20%, despite the fact that the pace of increases slowed in Q1. “Home price trends…

American Equity Shoots Up In Q1 2022

Just under half of all mortgaged residential properties in the U.S. were considered equity-rich in Q1 2022, up to 44.9% from 41.9% in Q4 2021 and 31.9% in Q1 2021, according to a new report from ATTOM. ATTOM’s U.S. Home Equity and Underwater Report shows that only one in 31 homes (3.2%) were considered seriously underwater in Q1 2022, about the same from last quarter but down significantly from 4.7% the year prior. “Homeowners continue to benefit from rising home prices,” said Rick Sharga, Executive Vice President of Market Intelligence for ATTOM.  “Record levels of home equity provide financial security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008.…

May Is The Best Time Of The Year To Sell A Home For Maximum Profit, CoreLogic Says

Selling a home in May, June, or July brings premiums of 10% or more above market value, according to a new analysis by ATTOM Data Solutions. ATTOM looked at home sales over the past eleven years to determine the best month to sell a home. It found that spring and summer are the most popular times for homebuying, giving sellers the best opportunity to make money on their homes. “April showers may bring May flowers, but May brings home sellers the best opportunities to watch their profits grow,” said Rick Sharga, Executive Vice President of Market Intelligence at ATTOM.  “Homeowners looking to maximize the price premium they can claim on their homes should sell their properties in May, June, and…

Q1 2022 Sets New Foreclosure High

Foreclosure activity rose in all 50 states in Q1 2022, with foreclosure starts and bank repossessions reaching their highest numbers in two years, according to ATTOM’s Q1 2022 Foreclosure Market Report. A total of 78,271 U.S. properties had a foreclosure filing during Q1, up 39% from Q4 2021 and 132% YOY. March alone saw 33,333 properties with foreclosure filings, up 29% from February and 181% YOY. It was the 11th straight month of YOY increases in foreclosure activity. “Foreclosure activity has continued to gradually return to normal levels since the expiration of the government’s moratorium, and the CFPB’s enhanced mortgage servicing guidelines,” said Rick Sharga, executive vice president of market intelligence for ATTOM.  “But even with the large year-over-year increase…

Home Flip Profits Declined In 2021 Despite Surge In Numbers

Home flipping profits fell across the country in 2021 despite a surge in the number of houses flipped, according to ATTOM Data Solution’s 2021 U.S. Home Flipping Report. The number of single-family homes and condos flipped in 2021 was 323,465, up from 257,091 in 2020 (+26%). This is the largest number of flips since nearly 334,000 homes were flipped by investors in 2006. In Q4 2021, there were 96,773 homes flipped, a rate of 6.8%. But flips accounted for only 5.5% of all home sales last year, falling in 53% of the markets analyzed by ATTOM. They are down from 5.5% in 2020 and 6.1% in 2019. The Northeast and West saw the biggest declines in number of homes flipped.…

Forbearances Drop To Post-Pandemic Low

Forbearance plans dropped to a post-pandemic low this week, falling by 49,800 (-6.5%), according to Black Knight’s blog, Vision. Forborne loans held by portfolios and PSLs drove the week with a decline of 20,300 (-8.1%), while FHA/VA loans in forbearance fell by 15,300 (-5.4%). GSE plans fell by 14,300 (-6.1%). Plan volumes are down 42,700 (-5.6%) month-over-month. Some 154,000 plans are up for review in early April, the next time Black Knight expects to see significant improvement. One-third should expire.  Overall foreclosure rates were up 11% month-over-month in February and 129% YOY as they return to pre-pandemic levels. Rick Sharga, executive vice president at RealtyTrac, an ATTOM company, said foreclosure activity this year will mimic February’s growth. “This isn’t an…

MBA: Pace Of Forbearance Exits Drops To Lowest Since June 2020

The total number of loans in forbearance fell from 1.67% of servicers’ portfolio volume to 1.41% in December 2021, according to the Mortgage Bankers Association’s (MBA) Loan Monitoring Survey. The pace of monthly forbearance exits is at its lowest point since MBA began tracking exits in June 2020. MBA estimates 705,000 homeowners are currently in forbearance plans. Independent mortgage banks saw a 0.28% decline from 1.94% to 1.66%, while depositories saw a 0.28% drop from 1.52% to 1.24%. The share of forborne Fannie and Freddie loans fell to 0.68%, down by 8 basis points, while Ginnie Mae loans fell from 2.10% to 1.63%, down 47 basis points. PLS and portfolio loans in forbearance dropped by 51 basis points to 3.43%.…

Forbearance Exits Remain High

Of single-family homeowners who entered Covid-19 related forbearance, 89% have now exited their plans. Active forbearance plans dropped by 43,000 (-8%) in the first week of January, according to Black Knight’s blog, Vision. The number of loans in forbearance fell across all categories, led by a 22,000 (-8%) drop in forborne loans held by portfolios and PSLs. Forbearances on FHA/VA loans fell by 17,000 (-16%) and GSE loans fell by 4,000 (-1.6%). The number of active plans is down 100,000 (-12%) from last month. An additional 155,000 plans are up for extension or removal in January. However, less than a third are expected to expire, meaning exit volumes will lessen moving forward. New plan starts rose again, reaching their highest…

Foreclosures Activity Hits Record Low

ATTOM Data Solution’s Year-End 2021 U.S. Foreclosure Market Report found foreclosure filings dropped 29% from 2020 and were down 95% from a peak of nearly 2.9 million in 2010. It is the lowest level since ATTOM began tracking filings in 2005. Properties with foreclosure filings–default notices, scheduled auctions, and bank repossessions– made up 0.11% of all U.S. housing units, down from 0.16% in 2020. “The COVID-19 foreclosure tsunami that some people had anticipated is clearly not happening,” said Rick Sharga, executive vice president at RealtyTrac, an ATTOM company.  The report is heartening from a broad view of foreclosure filings in the US. However, it found that filings increased as protections expired, pushing rates closer to pre-pandemic levels. A total of…