Page 4 – Safeguard Properties

U.S. Foreclosure Activity Increases Monthly in February 2025

Posted on March 14, 2025 by Safeguard

Industry Update
March 11, 2025

Source: ATTOM

ATTOM, a leading curator of land, property data, and real estate analytics, today released its February 2025 U.S. Foreclosure Market Report, which shows there were a total of 32,383 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions – up 5 percent from the prior month but down 1.7 percent from a year ago.

“February’s rise in foreclosure filings suggests evolving market pressures,” said Rob Barber, CEO at ATTOM. “While some increase may reflect seasonal trends, the uptick in foreclosure starts both month-over-month and year-over-year signals potential shifts. We’ll continue monitoring how economic factors influence foreclosure activity moving forward.”

Foreclosure completion numbers continue annual decline

Lenders repossessed 3,031 U.S. properties through completed foreclosures (REOs) in February 2025, up just under 2 percent from last month but down 11 percent from a year ago – continuing a trend of declining annual REO numbers seen in 12 of the last 13 months.

States that had at least 50 or more REOs and that saw the greatest annual decline in February 2025 included: New York (down 49 percent); South Carolina (down 44 percent); New Jersey (down 43 percent); Pennsylvania (down 35 percent); and Ohio (down 34 percent).

Among the 225 metropolitan statistical areas with a population of at least 200,000, that saw the greatest number of REOs included: Chicago, IL (154 REOs); Houston, TX (101 REOs); St. Louis, MO (91 REOs); Detroit, MI (87 REOs); and Philadelphia, PA (78 REOs).

Highest foreclosure rates in Delaware, Illinois, and Nevada

Nationwide one in every 4,395 housing units had a foreclosure filing in February 2025. States with the highest foreclosure rates were Delaware (one in every 2,278 housing units with a foreclosure filing); Illinois (one in every 2,333 housing units); Nevada (one in every 2,435 housing units); New Jersey (one in every 2,695 housing units); and South Carolina (one in every 2,816 housing units).

Those major metropolitan statistical areas (MSAs) with a population greater than 200,000, with the highest foreclosure rates in February 2025 were Modesto, CA (one in every 1,486 housing units with a foreclosure filing); Lakeland, FL (one in every 1,863 housing units); Columbia, SC (one in every 2,006 housing units); Chicago, IL (one in every 2,007 housing units); and Atlantic City, NJ (one in every 2,032 housing units).

Other than Chicago, among the metropolitan areas with a population greater than 1 million, those with the worst foreclosure rates in February 2025 included: Las Vegas, NV (one in every 2,044 housing units); Riverside, CA (one in every 2,166 housing units), Philadelphia, PA (one in every 2,195 housing units), and Jacksonville, FL (one in every 2,445 housing units).

Foreclosure starts increase monthly and annually

Lenders started the foreclosure process on 22,730 U.S. properties in February 2025, up 8 percent from last month and up 1 percent from a year ago.

Those states that had 100 or more foreclosure starts and saw the greatest monthly increase in foreclosures starts in February 2025 included: New Jersey (up 78 percent from last month); Colorado (up 58 percent); Iowa (up 57 percent); Georgia (up 42 percent); and South Carolina (up 29 percent).

Among those major metropolitan statistical areas with a population of at least 200,000, those with the greatest number of foreclosure starts in February 2025, included: New York, NY (1,387 foreclosure starts); Chicago, IL (1,367 foreclosure starts); Houston, TX (1,050 foreclosure starts); Philadelphia, PA (743 foreclosure starts); and Dallas, TX (651 foreclosure starts).

For full report, please click the source link above.

Q4 Update: Delinquencies, Foreclosures and REO

Posted on March 14, 2025 by Safeguard

Industry Update
March 14, 2025

Source: CalculatedRisk Newsletter

This entire housing cycle I’ve argued that we would NOT see a surge in foreclosures that would significantly impact house prices (as happened following the housing bubble) for two key reasons: 1) mortgage lending has been solid, and 2) most homeowners have substantial equity in their homes.

Yesterday, CoreLogic reported the Homeowner Equity Report (HER) for the fourth quarter of 2024. Nationwide, borrower equity increased by $281.9 billion, or 1.7% year-over-year. Past years of rapid growth have left many homeowners with a substantial accumulation of equity. This financial padding can serve as a backstop in the event of a relocation or job loss.

Quarter-over-quarter, the total number of mortgage residential properties with negative equity increased by 9.3% to 1.1 million homes or 2% of all mortgaged properties. While year-over-year, negative equity increased by 7% from 1 million homes, or 1.8% of all mortgage properties … Negative equity peaked at 26% of mortgaged residential properties in Q4 2009 based on CoreLogic equity data analysis.

With substantial equity, and low mortgage rates (mostly at a fixed rates), few homeowners will have financial difficulties even with an economic downturn.

Here is some data on REOs through Q4 2024 …

The dollar value of 1-4 family residential Real Estate Owned (REOs, foreclosure houses) was increased 6% YOY from $747 million in Q4 2023 to $790 million in Q4 2024. This is still historically extremely low.

Fannie Mae reported the number of REOs decreased to 5,895 at the end of Q4 2024, down 9% from 6,481 at the end of the previous quarter, and down 30% year-over-year from Q4 2023. Here is a graph of Fannie Real Estate Owned (REO).

This is very low and well below the pre-pandemic levels. REOs are a lagging indicator. REOs increase when borrowers struggle financially and have little or no equity, so they can’t sell their homes – as happened after the housing bubble. That will not happen this time.

Here is some data on delinquencies …

It is important to note that loans in forbearance are counted as delinquent in the various surveys but not reported to the credit agencies.

The percent of loans in the foreclosure process decreased year-over-year from 0.47 percent in Q4 2023 to 0.45 percent in Q4 2024 (red) and remains historically low. Loans in forbearance are mostly in the 90-day bucket at this point, and that has declined recently.

Compared to last quarter, the seasonally adjusted mortgage delinquency rate increased for all loans outstanding. By stage, the 30-day delinquency rate decreased 9 basis points to 2.03 percent, the 60-day delinquency rate increased 3 basis points to 0.76 percent, and the 90-day delinquency bucket increased 11 basis points to 1.19 percent.

The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the fourth quarter was 0.45 percent, remaining unchanged from the third quarter of 2024 and 2 basis points lower than one year ago.

Both Fannie and Freddie release serious delinquency (90+ days) data monthly. Freddie Mac reported that the Single-Family serious delinquency rate in January was 0.61%, up from 0.59% December. Freddie’s rate is up year-over-year from 0.55% in January 2024, however, this is close to the pre-pandemic level of 0.60%. Freddie’s serious delinquency rate peaked in February 2010 at 4.20% following the housing bubble and peaked at 3.17% in August 2020 during the pandemic.

Fannie Mae reported that the Single-Family serious delinquency rate in January was 0.57%, up from 0.56% in December. The serious delinquency rate is up year-over-year from 0.54% in January 2024, however, this is below the pre-pandemic lows of 0.65%. The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59% following the housing bubble and peaked at 3.32% in August 2020 during the pandemic.

And on foreclosures …

ICE reported that foreclosures starts and sales have increased recently, especially for VA loans, however foreclosure sales are still down year-over-year.

Foreclosure starts jumped by 30%, sales rose by 25%, and the number of active foreclosures rose by 7% in January following expiration of a recent moratorium on VA foreclosures.

While January increases in foreclosure activity are common, starts hit their highest level in 5 years, with more than 40K loans referred to foreclosure in the month.

Compared the same time last year, foreclosure starts among FHA (-2%) and conventional (-4%) loans declined, with the annual increase being solely driven by the spike in VA referrals.

Resumption of VA foreclosures – all else the same – could result in a roughly 15% increase in 2025 foreclosure referral activity compared to 2024.

January foreclosure sales rose from December following holiday moratoriums but were down from the same time last year (-5%) even with the resumption of VA foreclosure sales.

The bottom line is there will not be a huge wave of foreclosures as happened following the housing bubble. The distressed sales during the housing bust led to cascading price declines, and that will not happen this time. That doesn’t mean we won’t see price declines, especially in areas with a large number of homes for sale. And if the economy weakens, and unemployment increases, we might see more distressed sales. But that is very different than the housing bust.

For full report, please click the source link above.

FEMA Fire Management Assistance Declaration – South Carolina Covington Drive Fire

Posted on March 11, 2025 by Safeguard

FEMA Alert
March 7, 2025

FEMA has issued a Fire Management Assistance Declaration for the state of South Carolina to supplement state, tribal and local recovery efforts in areas affected by the Covington Drive Fire on March 1, 2025. The following counties have been approved for assistance:

Public Assistance:

Horry

South Carolina Covington Drive Fire (FM-5554-SC)

List of Affected Zip Codes

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

HUD Extends Foreclosure Relief to Californians Impacted by Los Angeles County Wildfires

Posted on March 7, 2025 by Safeguard

Industry Update
March 6, 2025

Source: U.S. Department of Housing and Urban Development

The U.S. Department of Housing and Urban Development (HUD) is announcing a 90-day extension of its foreclosure moratorium on Federal Housing Administration (FHA)-insured single family mortgages in the areas of Los Angeles County, California, devastated by the January 2025 wildfires.

HUD Secretary Scott Turner is making this announcement while touring a disaster zone in Altadena with Fifth District of Los Angeles Supervisor Kathryn Barger. The FHA-insured single family mortgage extension underscores HUD’s commitment to supporting Americans impacted by natural disasters by providing flexibility to families in the Presidentially Declared Major Disaster Area (PDMDA).

There are over 100,000 FHA-insured mortgages in Los Angeles County PDMDA. HUD is working with mortgage servicers and others to assess the extent of properties with FHA-insured mortgages in the designated area that have been severely damaged or destroyed.

“It is heartbreaking to witness the devastation caused by the horrific wildfires in Altadena and the surrounding areas of Los Angeles County and the heavy toll of this tragedy on individuals, families and communities,” said Secretary Scott Turner. “Empowering and supporting our neighbors so they can build or rebuild their future, including when disaster strikes, is a core part of HUD’s mission and we will continue providing help during hardship.”

“HUD’s extension of the foreclosure moratorium is a lifeline for wildfire survivors in Los Angeles County who are facing immense hardship,” said Los Angeles County Supervisor Kathryn Barger. “I appreciate Secretary Turner’s leadership and commitment to ensuring that families impacted by these devastating fires have the time and support they need to recover. This critical relief will help stabilize our communities as we work together to rebuild and heal.”

The moratorium prohibits mortgage servicers from initiating or completing foreclosure actions on FHA-insured single family forward or Home Equity Conversion mortgages in the Los Angeles County PDMDA through July 7, 2025. The moratorium was originally set to expire on April 8, 2025.

Borrowers unable to make their mortgage payments should contact their mortgage servicer for assistance as soon as practical. Borrowers may also contact the FHA Resource Center at (800) CALL-FHA (1-800-877-8339; or for TTY 1-800-877-8339) for assistance.

For borrowers and renters who need immediate housing and disaster recovery assistance, HUD-certified housing counselors are prepared to provide guidance on the options that are available. To find a HUD-approved housing counseling agency, borrowers can use HUD’s online search tool or use our phone search by calling (800) 569-4287 or (202) 708-1455 (TTY).

For borrowers whose homes are destroyed or damaged to an extent that requires reconstruction or complete replacement, contact an FHA-approved lender about FHA’s Section 203(h) loan program. This program provides 100 percent financing for eligible homeowners to rebuild their home or purchase a new one.

For borrowers seeking to purchase and/or repair a home that has been damaged, contact an FHA-approved lender about FHA’s Section 203(k) loan program. This program allows individuals to finance the purchase or refinance of a house, as well as the costs of repair or renovation, through a single mortgage.

For full report, please click the source link above.

Fannie and Freddie: Single Family Serious Delinquency Rates Increased in January

Posted on March 7, 2025 by Safeguard

Industry Update
March 4, 2025

Source: CalculatedRisk Newsletter

Freddie Mac reported that the Single-Family serious delinquency rate in January was 0.61%, up from 0.59% December. Freddie’s rate is up year-over-year from 0.55% in January 2024, however, this is close to the pre-pandemic level of 0.60%.

Some of the recent increase in the 90+ day delinquency rate is probably related to the hurricanes last year.

Freddie’s serious delinquency rate peaked in February 2010 at 4.20% following the housing bubble and peaked at 3.17% in August 2020 during the pandemic.

The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59% following the housing bubble and peaked at 3.32% in August 2020 during the pandemic.

These are mortgage loans that are “three monthly payments or more past due or in foreclosure”. Mortgages in forbearance are being counted as delinquent in this monthly report but are not reported to the credit bureaus.

For Fannie, by vintage, for loans made in 2004 or earlier (1% of portfolio), 1.46% are seriously delinquent (down from 1.47% the previous month).

For loans made in 2005 through 2008 (1% of portfolio), 2.08% are seriously delinquent (unchanged from 2.08%).

For recent loans, originated in 2009 through 2023 (98% of portfolio), 0.52% are seriously delinquent (up from 0.51%). So, Fannie is still working through a handful of poor performing loans from the bubble years.

For full report, please click the source link above.

New Homes in Hazelwood Part of Partnership with City of Pittsburgh and Pittsburgh Land Bank

Posted on March 6, 2025 by Safeguard

One Community Update
February 27, 2025

Source: www.wtae.com

City officials in Pittsburgh are working on revitalizing neighborhoods and making homes more affordable by collaborating with the Pittsburgh Land Bank. This partnership is an initiative aimed at stabilizing communities so residents can continue living in their homes while neighborhoods thrive.

Mayor Ed Gainey, along with other leaders and non-profit organizations, recently gathered in Hazelwood to discuss the importance of homeownership and the benefits of utilizing the Pittsburgh Land Bank.

The Land Bank’s mission is to transform unproductive or vacant properties into beneficial assets that can boost the city’s tax base while making homes accessible to current residents. By addressing delinquent property taxes, the program seeks to make these properties more accessible.

City Council member Bobby Wilson, who chairs the Pittsburgh Land Bank, emphasized the commitment to ensuring residents can stay in their neighborhoods and helping the city recover its properties for tax purposes.

For full report, please click the source link above.

With Properties in New Land Bank, Grand Rapids Eyes Affordable Housing Options

Posted on March 6, 2025 by Safeguard

One Community Update
February 28, 2025

Source: www.woodtv.com

The newly formed Grand Rapids Land Bank is focusing on affordable housing as it looks for ways to use many vacant properties in the city.

Sarah Rainero, the economic development director for the city, says the new land bank her department oversees can make a real impact.

“The goal with the land bank is to activate housing more and better, faster housing, and this authority will allow us to be a little more nimbler at the local level,” Rainero said.

Land banks are used to manage or sell abandoned, vacant or blighted properties.

“The land bank authorities really have the autonomy to manage, acquire, move property with the goal of activating, getting these properties back on the tax rolls,” Rainero explained.

It used to be that land banks in Michigan operated mostly at the state or county level. Detroit was the only city that had its own. The state land bank oversaw properties in Grand Rapids after the county voted to disband its land bank in December 2018.

Then in 2023, state lawmakers passed legislation that allowed Grand Rapids to have its own land bank. On Feb. 1 of this year, control of 107 properties was transferred from the state land bank to the city.

Some of those properties could be used for parks or purchased as a side lot by a neighboring property.

“Some of the lots are not buildable,” Rainero said. “We have an arrangement to manage those properties — snow removal, tree maintenance.”

But the goal for most of the properties is to help meet the need for affordable housing.

“We really want to be intentional about how these properties are being activated, people that are in the neighborhoods and that want to invest in their community,” Rainero said.

For full report, please click the source link above.

Broome County Land Bank Announces the Launch of the New Vacant Rental Program

Posted on March 6, 2025 by Safeguard

One Community Update
March 4, 2025

Source: www.wicz.com

The Broome County Land Bank was joined by local officials to announce the launch of the new Vacant Rental Program throughout Broome County on Tuesday, March 4.

The new program aims at rehabilitating vacant and unoccupiable rental units throughout Broome County.

In October 2024, the land bank was awarded $1.11 million in funding for this program to renovate 15-20 rental units throughout the county. Vacant rental program will assist mom-and-pop style landlords that may not have full access to financial resources, with the necessary repairs.

“So all in being perceived, this program is sort of an innovative approach to our mission that takes underutilized properties and puts them back into productive use,” Executive Director of Broome County Land Bank Jessica Haas said.

City of Binghamton Mayor Jared Kraham acknowledged the benefit the Vacant Rental Program brings to the community, saying this program is one that will help vacant units get back on the market.

“This is the type of program that will get vacant units back on the market. It’s very expensive to build new housing right now, but we have in our city a housing infrastructure of many, many, many hundreds, if not thousands of vacant units that need to be repaired, restored and put back on the market.”

For full report, please click the source link above.

FEMA Fire Management Assistance Declaration – Texas Duke Fire

Posted on March 6, 2025 by Safeguard

FEMA Alert
March 5, 2025

FEMA has issued a Fire Management Assistance Declaration for the state of Texas to supplement state, tribal and local recovery efforts in areas affected by the Duke Fire on March 5, 2025. The following counties have been approved for assistance:

Public Assistance:

Bexar

Texas Duke Fire (FM-5553-TX)

List of Affected Zip Codes

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

FEMA Fire Management Assistance Declaration – Texas Welder Fire

Posted on March 6, 2025 by Safeguard

FEMA Alert
March 4, 2025

FEMA has issued a Fire Management Assistance Declaration for the state of Texas to supplement state, tribal and local recovery efforts in areas affected by the Welder Fire on March 4, 2025. The following counties have been approved for assistance:

Public Assistance: