This past October, national foreclosure filings started on an upward hike. Considering the falling rates seen up to this point in 2016, the change has lead many to wonder about the root cause and the possible impact it may have for the market.
Foreclosure actions on a national level rose an astonishing 27 percent in October when compared to the month prior. This number accounts for default notices. scheduled auctions, and bank repossessions. It is important to note that while these numbers still fall below those which were reported in 2015, they still diverge from this year’s trends, as well as those seen for the past several years. Notably, this jump is the largest the market has seen in 9 years.
When considering all three categories, Florida’s spike in foreclosure activity isn’t quite as drastic as the national statistics. Still, October’s filings were up by 18.2 percent from September 2016. While it’s early to determine whether these numbers call for true concern, homeowners should still be aware of this recent increment in foreclosure activity.
Are we facing another foreclosure crisis?
Many of the foreclosures are tied to FHA loans provided by the government, leading some experts to believe that another foreclosure crisis is upon us. It’s much too soon to tell, but these latest stats do uncover some underlying issues that have been overlooked thus far concerning such loans. Borrowers who utilized FHA loans at the height of the housing crisis (and since then) likely were not in an ideal financial position to purchase a home. Given this likelihood, the risk of foreclosure is even greater for these mortgagers.
As foreclosure filings climb, being informed about homeowner rights and the alternatives to foreclosure becomes all the more important. If you are struggling to make mortgage payments, the sooner you seek help, the better. A Miami foreclosure defense attorney at Graham Legal is always just a call away, should you need to set up a free consultation.