Dear Readers,
According to ATTOM Data Solutions, there were a total of 9,702
U.S. properties with default notices, scheduled auctions, or bank
repossessions in January, down 11 percent compared with December
and down 80 percent compared with January 2020.
But anyone who watches television news or reads newspapers (yes,
some people still do) knows there are millions of Americans struggling
to keep their heads above water — people who have lost jobs and either
haven’t replaced them or have replaced them with lower-paying jobs.
So, what gives? Government forbearance programs have put a pause on
many foreclosures throughout the nation.
“January foreclosure activity declined at least in part due to the Biden
administration’s decision to continue the foreclosure moratorium on
government-backed loans through the end of March,” said Rick Sharga,
RealtyTrac executive vice president. “The moratorium and CARES Act
mortgage forbearance program have effectively prevented millions of
seriously delinquent loans from entering the foreclosure process. But
it’s important to remember that the number of foreclosures we’re seeing
right now doesn’t reflect market reality — and that’s something we’ll
need to deal with once these government programs expire.”
We should be proud we live in a country that has safety nets in place to
delay, if not prevent, a housing catastrophe. But Sharga and others are
right to recognize the approaching storm.
The Biden administration faces the delicate act of trying to keep people
in their homes while it tries to stimulate and return the economy to
where it was before the coronavirus pandemic.
Share your thoughts,
Mark Lowery
Editorial Director
The Title Report