It is difficult to predict with certainty whether or not there will be an increase in homes in foreclosure in 2023. There are several factors that could potentially impact the rate of foreclosures in the coming years, including the state of the economy, employment rates, and the availability of mortgage assistance programs.
One factor that could potentially lead to an increase in foreclosures is a downturn in the economy. If there is a recession or a significant economic slowdown, it could lead to a rise in unemployment, which could make it more difficult for homeowners to make their mortgage payments. This, in turn, could lead to an increase in the number of homes in foreclosure.
Another factor that could potentially contribute to an increase in foreclosures is a lack of access to mortgage assistance programs. Suppose homeowners are unable to take advantage of programs that help them modify their loans or provide temporary financial assistance. In that case, they may be more likely to fall behind on their mortgage payments and potentially face foreclosure.
However, it is also important to note that there are several initiatives in place that are designed to help homeowners avoid foreclosure. For example, the government has established programs such as the Making Home Affordable program, which provides assistance to homeowners struggling to make their mortgage payments due to financial hardship, such as a job loss or reduction in income.
Additionally, many mortgage lenders and servicers have implemented policies that allow homeowners to temporarily pause or reduce their mortgage payments if they are experiencing financial hardship due to the COVID-19 pandemic. These types of programs can be helpful in preventing an increase in foreclosures.
Overall, it is difficult to predict with certainty whether or not there will be an increase in homes in foreclosure in 2023. It will depend on a variety of factors, including the state of the economy, employment rates, and the availability of mortgage assistance programs. However, it is important to note that there are initiatives in place that can help homeowners avoid foreclosure if they are facing financial hardship.
If the Feds continue to raise interest rates in 2023 to combat inflation, a recession is likely and the result will be an increase in foreclosures. One lender told me they have nearly 70 files in arrears currently.