Increasing foreclosures from 21-22 loans

[Sebastian E.]

I have been following the foreclosures in my market pretty closely the last few months and I am seeing increasingly more foreclosures from loans originated in '21-'22. Barely any equity in these properties. What do we think: harbinger of more foreclosures coming to the broader market or isolated to that period where people overpaid? 

[Chris Seveney]

Quote from @Sebastian E.:

I have been following the foreclosures in my market pretty closely the last few months and I am seeing increasingly more foreclosures from loans originated in '21-'22. Barely any equity in these properties. What do we think: harbinger of more foreclosures coming to the broader market or isolated to that period where people overpaid? 

 Foreclosure rates were at historical lows due to government intervention - now that the free markets are able to do what they should be doing you will begin to see an increase in defaults, foreclosures and bankruptcies. Many homeowners in 21 and 22 bought at the peak and have rising taxes and insurance while home prices are falling, this is no different than the mental math behind 2008 where people have no equity in there homes and cannot afford the payments. When you have equity you fight for the home, when you do not you have less care for property and just want to get out.

Not predicting a huge wave but some markets will get hit much harder than others. but nationally you will see slight increases.