The federal foreclosure moratorium has ended, and lender forbearance plans (delayed mortgage payments) are ending. Florida was in the top five states leading in foreclosures in the third quarter.
Foreclosures are increasing
Foreclosure filings shot up 68% in the third quarter nationally compared to a year ago. The previous quarter saw foreclosures increase by 34%, according to ATTOM Data Solutions. There are estimated to be hundreds of thousands of homeowners scheduled to leave mortgage forbearance plans in the next few months.
Should I be worried?
Circumstances are a lot different than they were during the Great Recession. Employers are actively looking for workers, and unemployment is relatively low. Home prices are at an all-time high which helps home sellers. Homeowners that must sell their properties are receiving multiple offers and receiving a great deal of equity. The circumstances are entirely different from during the Recession when homes were underwater and had no equity.
Some of the hardest-hit areas were business service-related locations and states. Florida, heavily reliant on tourism, was especially hard hit. However, if you look at the big picture, there is a reason for optimism. Home prices should continue to be strong. Job growth, an influx of new residents, and historically low-interest rates should keep home values stable.