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Foreclosures are ticking up

On Behalf of | Jan 20, 2023 | Real Estate Law

Failure to meet your mortgage payments can result in foreclosure, the bank’s repossession of your home. Onerous as this is by itself, there may be cascading repercussions. Your credit rating may be impaired, and it will be very difficult to obtain credit in the future.

During the recent global health and economic crisis, the federal and state governments imposed moratoriums on home foreclosures, but those have now expired. In 2022, foreclosure rates climbed considerably.

Up 124.5% year-over-year

Florida saw a spike of 124.5% more foreclosures between the first six months of 2021 and the first six months of 2022. If this increase continues, foreclosures will soon be at 2019 levels.

The numbers may be a bit misleading. According to  ATTOM, a nationwide real estate data firm, the current uptick largely represents foreclosures that were in motion prior to the moratoriums and put on hold. New default activity is still relatively low.

Resources for homeowners

The U.S. Department of Housing & Urban Development offers housing counseling nationwide at no-or-low cost. They’re a phone call away at (800) 569-4287. And the Florida Department of Economic Opportunity makes resources available to homeowners in financial distress through the Community Services Block Grant Program, the Low-Income Home Energy Assistance Program, and the Low-Income Household Water Assistance Program.

It may also be helpful to consult with skilled counsel to sort through complex matters and assess options, and there are many options.

Ultimately, the bank doesn’t want your property. It’s in everyone’s interest that homeowners remain solvent. Experienced attorneys work with property owners to protect their investments and their futures.