Foreclosures

The court found the sale of a property held by a limited liability company violated bankruptcy-related restrictions because a resident with a Chapter 7 petition was involved.

Foreclosure starts also fell, coming in below pre-pandemic pace, according to Black Knight.

But a slower-than-anticipated rate of repossessions suggest distressed homeowners are finding solutions.

The opinion heightens the need for servicers to be careful about billing communications, particularly when a distressed loan or foreclosure is involved.

However, higher property values are likely to mitigate any potential large increase in abandonments because troubled borrowers are less likely to walk away.

While the number of loans with payments that have been late for three months or more has fallen, it’s still higher than in early 2020, according to Black Knight.

The 36% consecutive-month drop could mark the start of a period in which a small wave of financially distressed homeowners sell their homes through alternative means, according to Attom Data Solutions.

Roughly 24,000 people had new foreclosures listed on their credit reports in the first quarter, up from about 9,000 three months earlier, a Federal Reserve Bank of New York report says. States are trying to cushion the blow on homeowners now that many pandemic-related federal protections have ended.

The legislation, awaiting the governor’s signature, overturns a state court ruling that made it easier for lenders to restart the six-year statute of limitations timeline.

Strong general unemployment gains, student loan deferrals and borrowers enjoying low interest rates secured in the refinance boom contributed to the positive gains.