Fifty-seven percent of survey respondents expect growth of 1% to 4% in their organization's foreclosure volumes during the latter half of this year, while ten percent expect an increase of 5% or more, and another ten percent anticipate a decrease of 5% or more.
Half of loans in loss-mitigation status were expected to permanently perform and avoid foreclosure, with home equity levels playing a role. Respondents estimated that seriously delinquent loans had a combined loan-to-value ratio of 65%.
The home equity cushion is being creatively utilized to help distressed homeowners avoid foreclosure, according to Elan Chambers, Auction.com's senior vice president of strategic partnerships and business development.
Rising costs for homeowners insurance and property taxes were cited as the biggest potential risks for higher delinquency rates in 2024, with hidden homeownership costs leading the list of risk factors for mortgage default servicing.
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