Page 15 – Safeguard Properties

Fannie “Real Estate Owned” Inventory Decreased 10% in Q2 2024

Posted on August 23, 2024 by Safeguard

Industry Update
August 13, 2024

Source: Calculated Risk Finance & Economics

Fannie reported results for Q2 2024. Here is some information on single-family Real Estate Owned (REOs).

Fannie Mae reported the number of REOs decreased to 7,179 at the end of Q2 2024, down 10% from 7,971 at the end of the previous quarter, and down 17% year-over-year from Q2 2023.

For Fannie, this is down 96% from the 166,787 peak number of REOs in Q3 2010.

This is well below the normal level of REOs for Fannie, and there will not be a huge wave of foreclosures.

For full report, please click the source link above.

Top 10 Counties with Highest Foreclosure Rates in July 2024

Posted on August 23, 2024 by Safeguard

Industry Update
August 16, 2024

Source: ATTOM

According to ATTOM’s just released July 2024 U.S. Foreclosure Market Report, a total of 31,929 properties in the U.S. had foreclosure filings, including default notices, scheduled auctions, or bank repossessions. This marks a 15 percent increase from the previous month and a slight 0.2 percent rise compared to the same period last year.

ATTOM’s latest foreclosure activity analysis reported that across the nation, one in every 4,414 housing units had a foreclosure filing in July 2024. The states with the highest foreclosure rates were Delaware (one in every 2,214 housing units), Nevada (one in every 2,245), Utah (one in every 2,289), New Jersey (one in every 2,607), and Illinois (one in every 2,660).

The report also noted that among the 224 metropolitan statistical areas with populations of at least 200,000, the highest foreclosure rates in July 2024 were recorded in Provo-Orem, UT (one in every 940 housing units), Macon, GA (one in every 1,167), Columbia, SC (one in every 1,587), Spartanburg, SC (one in every 1,895), and Atlantic City-Hammonton, NJ (one in every 1,910).

Also, according to the report, in July 2024, lenders initiated the foreclosure process on 21,870 properties across the U.S., marking an 18 percent increase from the previous month and a 4 percent rise compared to the same time last year. The states with the highest number of foreclosure starts in July 2024 were California (2,342), Florida (2,339), Texas (2,222), Illinois (1,221), and New York (1,145).

ATTOM’s July 2024 foreclosure analysis also revealed that lenders repossessed 3,282 U.S. properties through completed foreclosures (REOs), representing a 14 percent increase from the previous month but a 2 percent decrease from the previous year. The states with the highest number of REOs in July 2024 were New York (377), California (370), Illinois (221), Pennsylvania (219), and Michigan (212).

In this post, we take a more granular look by diving deep into the data behind ATTOM’s July 2024 foreclosure report to uncover the top 10 U.S. counties with a population of at least 100,000 that had the highest foreclosure rates in July 2024. Those counties include: Bibb County, GA (one in every 909 housing units with a foreclosure filing); Utah County, UT (one in every 921 housing units); Charles County, MD (one in every 1,299 housing units); Sussex County, NJ (one in every 1,363 housing units); Lake County, IN (one in every 1,445 housing units); Warren County, NJ (one in every 1,453 housing units); Ascension County, LA (one in every 1,471 housing units); Richland County, SC (one in every 1,498 housing units); Osceola County, FL (one in every 1,509 housing units); and Delaware County, PA (one in every 1,537 housing units).

For full report, please click the source link above.

Zombie Foreclosure Rate Continues to Decline in 3rd Quarter of 2024, Marking Lowest Level Since 2021

Posted on August 23, 2024 by Safeguard

Industry Update
August 21, 2024

Source: ATTOM

ATTOM, a leading curator of land, property, and real estate data, today released its third-quarter 2024 Vacant Property and Zombie Foreclosure Report showing that 1.4 million (1,357,423) residential properties in the United States are vacant. That figure represents 1.3 percent, or one in 76 homes, across the nation – roughly the same as in the second quarter of this year.

The report analyzes publicly recorded real estate data collected by ATTOM — including foreclosure status, equity and owner-occupancy status — matched against monthly updated vacancy data. (See full methodology below).

The report also reveals that 222,934 residential properties in the U.S. are in the process of foreclosure in the third quarter of this year, down 6 percent from the second quarter of 2024 and down 29.3 percent from the third quarter of 2023. Foreclosure activity has declined over the past year following a surge in cases that hit after a nationwide moratorium on lenders pursuing delinquent homeowners, imposed during the Coronavirus pandemic, was lifted in the middle of 2021.

Among those pre-foreclosure properties, about 7,000 sit vacant as zombie foreclosures (pre-foreclosure properties abandoned by owners) in the third quarter of 2024. That figure is slightly above the number in the prior quarter, but down 20.2 percent from a year ago.

The latest count of zombie homes continues a long-term pattern of those properties representing only a tiny portion of the nation’s total housing stock – currently at just one of every 14,776 homes around the U.S. The ratio is about the same as the level of one in 14,724 in the prior quarter, but well down from one in 11,565 in the third quarter of last year, marking the lowest level since early 2021. Zombie foreclosures remain so rare that most local housing markets around the country have little or no issues with the blight and decay those properties can attract and spread.

The portion of pre-foreclosure properties that have been abandoned into zombie status, meanwhile, ticked up a bit, from 2.9 percent in the second quarter of 2024 to 3.1 percent in the current quarter.

“Zombie foreclosures continue to be a mere blip on the radar screen – one of many measures of the overall strength of the U.S. housing market. After some worries about a rise in abandoned homes following the end of the COVID-era foreclosure clampdown, they remain an anomaly throughout most of the country,” said Rob Barber, CEO for ATTOM. “One significant factor is the historically high levels of home equity. This provides homeowners who may be struggling with their mortgage payments a strong incentive to negotiate new payment plans, which in turn reduces the number of foreclosures. As a result, fewer owners are simply walking away from their properties like so many did after the Great Recession of the late 2000s.”

The hold-steady pattern of zombie properties during the third quarter comes as the nation’s housing market boom continues into its 13th year, reversing signs of a slowdown in 2023.

The nationwide median home value shot up 6 percent, year over year, in the Spring of 2024, reaching a new high of $365,000, according to ATTOM’s home sales data. It has increased every year since 2011, more than doubling during that time. Those gains have led to historic improvements in homeowner equity, which has resulted in almost 95 percent of owners with mortgages having at least some equity built up and half owing less than 50 percent of the estimated value of their properties.

For full report, please click the source link above.

U.S. Foreclosure Activity Sees a Monthly Increase in July 2024

Posted on August 23, 2024August 23, 2024 by Safeguard

Industry Update
August 15, 2024

Source: ATTOM

ATTOM, a leading curator of land, property, and real estate data, today released its July 2024 U.S. Foreclosure Market Report, which shows there were a total of 31,929 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — up 15 percent from a month ago and up slightly by .2 percent from a year ago.

“July’s foreclosure activity reflects a slight shift in the housing market,” said Rob Barber, CEO at ATTOM. “With an 18 percent increase in foreclosure starts and a 14 percent rise in completed foreclosures from last month, these shifts may highlight growing pressures in certain areas. However soaring home prices seem to continue and have spiked the value of homes across the nation, which boosts equity for homeowners at virtually every stage of paying off mortgages. Monitoring these next few months will help us better understand the implications for the real estate sector.”

Delaware, Nevada, and Utah post highest foreclosure rates

Nationwide, one in every 4,414 housing units had a foreclosure filing in July 2024. States with the highest foreclosure rates were Delaware (one in every 2,214 housing units with a foreclosure filing); Nevada (one in every 2,245 housing units); Utah (one in every 2,289 housing units); New Jersey (one in every 2,607 housing units); and Illinois (one in every 2,660 housing units).

Among the 224 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in July 2024 were Provo-Orem, UT (one in every 940 housing units with a foreclosure filing); Macon, GA (one in every 1,167 housing units); Columbia, SC (one in every 1,587 housing units); Spartanburg, SC (one in every 1,895 housing units); and Atlantic City-Hammonton, NJ (one in every 1,910 housing units).

Those metropolitan areas with a population greater than 1 million with the worst foreclosure rates in July 20244 were: Las Vegas, NV (one in every 2,089 housing units); Philadelphia, PA (one in every 2,197 housing units); Jacksonville, FL (one in every 2,274 housing units); Chicago, IL (one in every 2,279 housing units); and Riverside, CA (one in every 2,556 housing units).

Greatest numbers of foreclosure starts in California, Florida, and Texas

Lenders started the foreclosure process on 21,870 U.S. properties in July 2024, up 18 percent from last month and up 4 percent from a year ago.

States that had the greatest number of foreclosure starts in July 2024 included: California (2,342 foreclosure starts); Florida (2,339 foreclosure starts); Texas (2,222 foreclosure starts); Illinois (1,221 foreclosure starts); and New York (1,145 foreclosure starts).

Those major metropolitan areas with a population greater than 1 million that had the greatest number of foreclosure starts in July 2024 included: New York, NY (1,286 foreclosure starts); Chicago, IL (1,555 foreclosure starts); Philadelphia, PA (782 foreclosure starts); Miami, FL (758 foreclosure starts); and Los Angeles, CA (689 foreclosure starts).

For full report, please click the source link above.

Mortgage Delinquencies Increase in the Second Quarter of 2024

Posted on August 23, 2024 by Safeguard

Industry Update
August 15, 2024

Source: Mortgage Bankers Association

The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.97 percent of all loans outstanding at the end of the second quarter of 2024, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.

The delinquency rate was up 3 basis points from the first quarter of 2024 and up 60 basis points from one year ago. The percentage of loans on which foreclosure actions were started in the second quarter fell by 1 basis point to 0.13 percent.

“Mortgage delinquencies increased across all product types compared to this time last year,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “While delinquencies are still low by historical standards, the recent increase corresponds with a rising unemployment rate, which has historically been closely correlated with mortgage performance.”

Added Walsh, “The composition of mortgage delinquencies by stage has evolved. As of the second quarter of 2024, the earliest stage delinquencies – those loans 60 days or less delinquent – accounted for the entire increase from the previous year. Meanwhile, seriously delinquent loans – those loans 90 days or more delinquent or in foreclosure – fell to their lowest levels since 1984 as servicers are helping at-risk homeowners avoid foreclosures through loan workout options that can mitigate temporary distress.”

For full report, please click the source link above.

Share of Mortgage Loans in Forbearance Increases to .27% in July

Posted on August 23, 2024August 23, 2024 by Safeguard

Industry Update
August 19, 2024

Source: Mortgage Bankers Association

The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance increased to 0.27% as of July 31, 2024. According to MBA’s estimate, 135,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 8.2 million borrowers since March 2020.

The share of Fannie Mae and Freddie Mac loans in forbearance increased 1 basis point to 0.12% in July 2024. Ginnie Mae loans in forbearance increased by 12 basis points to 0.56%, and the forbearance share for portfolio loans and private-label securities (PLS) increased 2 basis points to 0.33%.

“July saw an increase of approximately 20,000 more U.S. homeowners in forbearance compared to the previous month,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Most of this change can be attributed to recent natural disasters, which accounted for 27 percent of all loans in forbearance last month compared to 16 percent in June.”

For full report, please click the source link above.

Atlanta’s ‘Blight Tax’ Crackdown Passes into Law

Posted on August 23, 2024 by Safeguard

One Community Update
August 8, 2024

Source: Urbanize Atlanta

A month after it was introduced, “Blight Tax” legislation that aims to aggressively crack down on absentee landlords—including corporations—and tidy up neglected properties throughout Atlanta is now officially law.

Whether Atlantans will use the new tool, and how effective code enforcement will be, remains to be seen.

The legislation passed the Atlanta City Council 11-1 during its Monday meeting. It allows city officials to tax blighted property owners up to 25 times higher than current millage rates, in hopes of incentivizing them to revitalize properties or sell. Antonio Lewis, District 12 city councilmember, was the lone naysayer, the AJC reports.

A city spokesperson tells Urbanize Atlanta the law officially went into effect when Mayor Andre Dickens signed the legislation this week.

To report concerns with blighted properties, Atlanta residents are asked to call 311, the city’s 24-7 system for addressing non-emergency situations, per the spokesperson.

The bill was introduced by Dickens and District 3 city councilmember Byron Amos in July as a means of addressing vacant, unkept houses and larger sites that further disinvestment in Atlanta neighborhoods.

Amos, whose district covers sections of Midtown, the Marietta Street Corridor, and Westside neighborhoods such as Vine City and English Avenue, said last month the Blight Tax will give the city stronger leverage in persuading owners to clean up or sell negligent properties, instead of waiting years to cash in and dragging communities down.

The legislation’s backers are quick to point out the program will not apply to any property that’s occupied, regardless of its condition, to avoid displacing residents.

Any blighted property subjected to higher taxes that gets remediated and returned to a productive use can be eligible for a discounted tax rate once the work is finished, according to the ordinance.

Large-scale properties such as former industrial sites that significantly impact neighborhoods would be special cases. Prior to redevelopment, those property owners would first have to agree to a development plan that addresses specific neighborhood objectives—such as connectivity, transportation, and public amenities—that benefit broader communities.

The Blight Tax ordinance authorizes city officials to take advantage of a program approved by Georgia voters geared toward persuading property owners to redevelop or remediate blighted real estate. Similar measures have been implemented around Georgia and other states as a “surgical, judicial enforcement tool” applied to properties that could have otherwise sat vacant for decades, according to the legislation’s authors.

For full report, please click the source link above.

Essex Co. Land Bank Announces New Initiatives

Posted on August 23, 2024 by Safeguard

One Community Update
August 12, 2024

Source: The Sun

The Essex County Land Bank, administered by the North Country Rural Development Coalition (NRDC), has announced two strategic programs aimed at revitalizing vacant and blighted properties across Essex County.

The “Vacant Rental Improvement Program (V-RIP)” and the “Pilot Vacant Property Clearance Program” are designed to transform these underutilized spaces into valuable community assets, in line with the mission to promote sustainable development and enhance residents’ quality of life.

“These programs will be a cornerstone in our strategy to drive economic development and support our local workforce by transforming vacant sites into vibrant spaces. By addressing blight and repurposing underutilized properties, we’re not just enhancing our neighborhoods, we’re laying down the foundations for a more robust and resilient community,” said Nicole Justice Green, Executive Director of the Essex County Land Bank. “These pre-applications are profoundly important and are necessary to determine demand in order to secure funding.”

Additionally, NRDC has applied for $750,000 in storm and flood relief funding to assist homeowners affected by recent severe weather events. This funding is intended to support critical repairs and restorations for homes damaged by the storms and floods, providing much-needed relief to our residents.

For full report, please click the source link above.

Birmingham Receives Aid to Implement, Educate on New Code Enforcement Practices

Posted on August 23, 2024 by Safeguard

One Community Update
August 20, 2024

Source: Alabama Public Radio

The Center for Community Progress is awarding Birmingham $50,000 in technical assistance to help revamp its code enforcement practices.

The Department of Planning, Engineering, and Permits (PEP) will use this resource to implement and educate the public about the recently passed foreclosure bill SB9 signed by Governor Kay Ivey, according to the city.

“The SB9 legislation is another strategic tool in combating code enforcement issues within the City of Birmingham,” said Katrina Thomas, Director of PEP, in a news release.

“This legislation will provide a path forward for the City to pursue non-owner-occupied property where we have seen repeat nuisance violations, unpaid code enforcement liens, and negligent response regarding abatement of such violations,” she continued. “We look forward to working hand in hand with Community Progress as we implement a local ordinance and educate our citizens on the tool.”

Birmingham’s Department of Planning, Engineering and Permits engaged in a rigorous interview and application process for this competitive award. The team is partnering with the Birmingham City Council to build out a local ordinance that will put in place the legal mechanism to pursue foreclosure for non-owner occupied properties with code enforcement liens.

Since 2010, the Community Progress team of experts has provided urban, suburban, and rural communities battling systemic vacancy with the policies, tools, and resources needed to address the full cycle of property revitalization.

Their Technical Assistance Scholarships enable the pilot and design of new programs and practices that become models for the community revitalization field to emulate and implement in order to address vacant, abandoned, and deteriorated properties.

“Each community selected for the Technical Assistance Scholarship demonstrated a strong commitment to evaluating their code enforcement practices and exploring reforms that will positively impact residents and their neighborhoods,” said Tarik Abdelazim, VP of Technical Assistance, Center for Community Progress, in a press release.

“We are thrilled to be working with leaders in the City of Birmingham as they work to implement new legal tools to address problem properties in pursuit of an equitable, safe, and resilient city for all,” he continued.

The national experts at Community Progress, who have worked with hundreds of diverse communities, will help scholarship communities shift from a traditional code enforcement approach to strategic code compliance.

Each successful applicant will be awarded approximately 200 hours of customized technical assistance from a team of experts at Community Progress. These services cost approximately $50,000, but the scholarship will fully underwrite these costs. Cleveland, Ohio, and Lima, Ohio were also awarded scholarships.

For full report, please click the source link above.

FEMA Fire Management Assistance Declaration – Oregon Lee Falls Fire

Posted on August 22, 2024 by Safeguard

FEMA Alert
August 9, 2024

FEMA has issued a Fire Management Assistance Declaration for the state of Oregon to supplement state, tribal and local recovery efforts in areas affected by the Lee Falls Fire on August 8, 2024. The following counties have been approved for assistance:

Public Assistance: