ABBA First Mortgage News

Are foreclosures on the rise?

CoreLogic is predicting the serious delinquency rate will quadruple by the end of 2021. That pushes up to 3 million homeowners into serious delinquency absent any additional government programs or support. There’s been much said about what the forbearance to foreclosure pipeline might look like once the CAREs ACT forbearance program comes to an end. Much of the sentiment has been optimistic with economists pointing to the record amount of equity that homeowners have these days. Meaning that if homeowners get to the end of the line and find they still can’t pay their mortgages, they always have the option to sell their homes. Also lending to that optimism is the fact that the forbearance uptake is on the decline. CoreLogic’s forecast puts some black clouds on that outlook. “Barring additional intervention from the federal and state governments, we are likely to see meaningful spikes in delinquencies over the short to medium term,” said Frank Martell, president and CEO of CoreLogic, in a press release.

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