COVID-19 brought with it several socioeconomic shifts, leading to a decrease in performance across sectors and large-scale unemployment. The US Foreclosure Market was significantly affected, and despite a sharp fall in on-time mortgage payments, foreclosure rates remained low for the two-year-long Pandemic period. As of 2022, COVID-era economic policies have been lifted in the US, and the Mortgage Industry is seeing a rise in performance, along with an increase in foreclosure rates.
In order to optimize growth in the post-COVID economy, banks and property management companies in the Foreclosure Market should continue to apply the technological solutions that became necessary during the Pandemic, and take measures to offset the staff shortages caused by mass layoffs. Read on to understand why the drop in foreclosures occurred, where the market is likely to go, and how outsourcing can benefit banks and property preservation companies in the post-COVID economy.
The US Foreclosure Market during the Pandemic
Source: Black Knight Inc.’s McDash Data and calculations by Juan M. Sanchez, Vice President of the Federal Reserve Bank of St. Louis, and Olivia Wilkinson, Research Associate at the Federal Reserve Bank of St. Louis. Note: Grey areas indicate recession
The US Foreclosure Market in 2022
Presently, foreclosure is starting to return to 2019 levels, as indicated by ATTOM. The curator of real estate data recently released their August 2022 US Foreclosure Market Report, which shows that there were a total of 23,952 US properties that have filed for foreclosure over the month. This is up 12% from July and 187% from a year ago. Nationwide, one in every 4,072 homes had a foreclosure filing in August, with Illinois, Delaware, South Carolina, New Jersey, and Florida leading state-wise.
Benefits of Outsourcing Property Preservation Support
- Reducing the need for permanent, in-house staff, and drastically cutting the added costs, like new equipment, technology, onboarding, training, and overall infrastructure, of onboarding new staff.
- Providing expertise in a range of property preservation services, such as auditing, appraisals, processing, bid creation, business development, building contractor networks, client/contractor communications and more, at cost-effective prices.
- Getting support for hectic back-office duties, freeing up the employees to focus on scaling the business.
- Following the industry’s Best Practices, such as operating software meant to handle large volumes of data, and to aid in maintenance services and connectivity with the mortgage industry.
- Analysing parameters to predict rises and falls in the US Mortgage Sector, so that banks and property preservation companies may be prepared to handle market shifts.
Conclusion
