If Foreclosures Hit Market, It Won’t be Until 2022

October 11, 2020

All Real Estate News

A stop sign with an additional yellow sign underneath it that reads "Foreclosure."

Homeowners in mortgage forbearance most likely are in a situation where they won’t have to make payments until March 2021. Once to payments come due, it could take years for the foreclosure proceedings to finalize.

According to a report released from Black Knight based on previous natural disaster recovery patterns, mortgage payment delinquencies are not expected to return to the levels they were at until at least March 2022. With natural disasters, 90-day delinquencies peak about 3 or 4 months later, not to mention the times it can take in the state of Florida to go through the courts.

COVID has placed pressure on mortgage delinquencies for about 5 months now. Early state delinquencies fell 9% in August, during which time serious delinquencies grew 5%. August’s mild increase may mean the 90-day mortgage delinquencies could be approaching their peak. JuIn September about 88.9% of first-lien mortgages completed a monthly payment, compared to about 88.6% in August, and 87.5% in June.