Today, in the Calculated Risk Real Estate Newsletter: Delinquencies, Foreclosures and REO
A brief excerpt:
Last year, I pointed out that the foreclosure moratorium, combined with the expiration of a large number of forbearance plans, would NOT lead to a surge in foreclosures and impact house prices (as happened following the housing bubble).
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Here is some data on REOs through Q4 2021 …
…We will probably see an increase in REOs in 2022.
This graph shows the nominal dollar value of Residential REO for FDIC insured institutions. Note: The FDIC reports the dollar value and not the total number of REOs.
The dollar value of 1-4 family residential Real Estate Owned (REOs, foreclosed houses) declined from $1.11 billion in Q4 2020 to $0.78 billion in Q4 2021. This is the lowest level of REOs in many years. (Probably declined sharply due to foreclosure moratoriums, forbearance programs and house price increases).
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The bottom line is there will be an increase in foreclosures in 2022 (from record low levels), but it will not be a huge wave of foreclosures.
There is much more in the article. You can subscribe at https://calculatedrisk.substack.com/