Foreclosures

If an unusual consumer protection gets rolled back in the state, servicers could get more of a second chance in court and borrowers will lose some protection.

The parent company Ocwen is contesting the award from the arbitrator, who ruled the company made a false offer to the borrower.

California recorded the largest total of new starts, while Illinois, Delaware and New Jersey led all states in the rate of filings during the third quarter, according to Attom.

Three percent of all mortgages were 30 or more days past due on their scheduled payment or in foreclosure in July.

The month ended with 54,000 less properties for which the borrower was at least 30 days or more late on their payments, Black Knight said.

The Federal Housing Finance Agency's quarterly report said that the government sponsored enterprises prevented a total of 96,952 foreclosures

Still near historic low levels, the share of borrowers entering the early stages of delinquency in June increased 0.1 percentage point.

Completions in August remained far lower than before COVID-19 arrived in the United States but initial actions rose fast enough to potentially meet expectations that they'll normalize in 2023.

At the same time, the share of overall vacancies fell due to limited inventory, according to a new Attom report.

A few studies released Tuesday add to expectations that the small number of mortgages remaining in forbearance will contribute to a higher foreclosure rate in the future.

But many expect only a slight increase in completions, with the rate at which delinquent mortgages cure outperforming the historic average, according to Auction.com.

Inflation and higher interest rates are hurting distressed borrowers, but low unemployment, remaining forbearance and loss mitigation options are still blunting their impacts, recent loan-performance numbers suggest.

New starts in the first half of the year came in 19% higher than early 2020, but primarily affected long-delinquent properties protected by moratoriums.

The government-sponsored enterprises divested themselves of the largest share of these loans since they first began selling them in 2014, a Federal Housing Finance Agency report found.

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.