Experts are predicting a spike in foreclosures as a result of the coronavirus pandemic when the mortgage forbearance periods end next year.
However, they are also predicting that the number of foreclosures resulting from the pandemic will be mild compared to the housing crisis of 2008.
Whereas the 2008 housing crash was a result of reckless lending and borrowing, credit standards have remained tight and housing prices have remained steady throughout the pandemic. Unfortunately, we can still expect to see many foreclosures resulting from the catastrophic loss of jobs that the coronavirus pandemic has caused.
Although foreclosures will rise, they are expected to trickle in, rather than flood the industry.
ATTOM Data Solutions predicts that 200,000 homeowners will default on their mortgage in the next year and will likely vary by location.
These are the top 5 states that are expected to have the largest number of foreclosure filings:
The states likely to see the smallest increase in foreclosure filings include: