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Foreclosure rates paint a bleak picture for homeowners

On Behalf of | Oct 13, 2023 | Foreclosure/Repossession

The roller-coaster ride that is mortgage foreclosure continues to confound financial experts with its peaks and valleys. A lengthy time of lower foreclosure rates domestically has turned into another rise. August saw nearly 34,000 foreclosure filings, representing a two percent increase from 2022.

Experts point to the end of COVID-related programs, specifically foreclosure moratoriums and loan forbearance, as the culprit in the growth, denying struggling homeowners those options.

Increased costs for dwellings

Also playing a role is skyrocketing home prices, currently exceeding $400,000. Combined with skyrocketing mortgages, the Federal Reserve has increased interest rates, up 1.29 percent from last year due to growing inflation. Buying a new home, let alone refinancing an existing mortgage, while possible, is leaving those who took those actions with payments they cannot afford.

The latest foreclosure rates in August do not provide promising news, particularly when it comes to certain areas of the East Coast:

  • Virginia ranks 22nd with a foreclosure rate of one in every 5,335 households. Nearly 700 homes so far this year have gone into foreclosure in the 12th most populous state.
  • Georgia came in at 13 for the highest foreclosure rates in August. Exceeding four million homes, 1,168 experienced foreclosures, or one in every 3,746 dwellings.
  • South Carolina is near the top of foreclosures, ranking third in the nation. One in every 2,506 homes went into foreclosure. With more than 2,300,000 housing units, 923 were foreclosed in August.

The peaks and valleys of home foreclosures continue to create uncertainty for homeowners wanting to keep a roof over their heads. Living month to month, if not week to week and day by day, is no way to live.