Page 6 – Safeguard Properties

Birmingham Council Presented with Law to Allow Foreclosure on Nuisance Properties

Posted on September 4, 2025 by Safeguard

One Community Update
September 2, 2025

The Birmingham City Council on Tuesday heard about a proposed ordinance that would give city officials the power to seek foreclosure on nuisance properties in certain cases, with the goal of revitalizing the city’s neighborhoods.

“This is a judicial process that targets the property and not the person,” Katrina Thomas, director of the city’s Department of Planning, Engineering and Permits, told councilors attending a Committee of the Whole meeting.

Birmingham officials can issue liens on nuisance properties to help offset the costs of demolishing or abating the issues with the structure. But Thomas said that the current system doesn’t give the city much power to enforce the liens, so the expenses are often unrecoverable.

“We issue liens, but those liens often sit unpaid. They sit for years, and those properties continue to decay and then, meanwhile, neighbors that live next door to these unsafe structures and overgrown lots and repeat nuisance activities, they want answers,” she told the council.

A state law passed within the last year gives cities such as Birmingham more options in terms of enforcement. If the council were to pass the ordinance Thomas presented on Tuesday, city officials could petition judges to grant foreclosures on nuisance properties.

Thomas stressed that the properties would have to meet several criteria to qualify for this enforcement process — the chief one being that it can’t be an owner-occupied dwelling.

“It ensures that owner-occupied properties are exempt so that families will not lose their home through this process,” she said.

The city can foreclose if liens remain unpaid for more than six months. Other key triggers for foreclosure include if the property:

Has liens that exceed $1,500.

Has had three nuisance abatements within 36 months.

Is needed for public use.

Is not tax delinquent. Thomas said this would help the city avoid paying the extra costs of tax liens.

Thomas said that if the council approves the ordinance, the city would start with a pilot of 100 properties to test the process and scale appropriately. Public education and community engagement will be crucial, she said.

For their part, the council members expressed support for the ordinance, voting to move the measure forward for a full council vote.

“I think it’s wonderfully written and it sounds like you and the people in your department have really thought this through,” Councilor Hunter Williams said.

For full report, please click the source link above.

Q2 Update: Delinquencies, Foreclosures and REO

Posted on September 4, 2025 by Safeguard

Industry Update
September 3, 2025

Source: CalculatedRisk Newsletter

Even with the recent weakness in house prices, it is important to note that there will NOT be a surge in foreclosures that could lead to cascading house price declines (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.

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

But it is still important to track delinquencies and foreclosures.

Here is some data on REOs through Q2 2025 …

The dollar value of 1-4 family residential Real Estate Owned (REOs, foreclosure houses) was up 15% YOY from $766 million in Q2 2024 to $852 million in Q2 2025. This is still historically extremely low.

Fannie Mae reported the number of REOs decreased to 4,666 at the end of Q2 2025, down 11% from 5,236 at the end of the previous quarter, and down 35% year-over-year from 7,179 in Q2 2024. 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 increased year-over-year from 0.43 percent in Q2 2024 to 0.48 percent in Q2 2025 (red) but remains historically low.

From the MBA:

Compared to last quarter, the seasonally adjusted mortgage delinquency rate decreased for all loans outstanding. By stage, the 30-day delinquency rate decreased 4 basis points to 2.10 percent, the 60-day delinquency rate decreased 1 basis point to 0.72 percent, and the 90-day delinquency bucket decreased 6 basis points to 1.11 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 second quarter was 0.48 percent, down 1 basis point from the first quarter of 2025 and 5 basis points higher than one year ago.

Both Fannie and Freddie release serious delinquency (90+ days) data monthly.

These are mortgage loans that are “three monthly payments or more past due or in foreclosure”. The pandemic related increase in serious delinquencies was very different from the increase in delinquencies following the housing bubble. Lending standards have been fairly solid over the last decade, and most of these homeowners have equity in their homes – and they have been able to restructure their loans once they were employed.

And on foreclosures …

ICE reported that active foreclosures are still very low but have increased recently. have decreased and are near the records. From ICE: ICE August Mortgage Monitor report.

Foreclosure activity remains low, even compared to the already low levels entering the COVID-19 pandemic.

Only 208K mortgages were in active foreclosure nationwide entering Q3, nearly 30% below the same month in 2019.

That said, activity is slowly trending higher with the number of loans in active foreclosure, foreclosure starts, and sales all rising year over year in each of the past four months.

The rise in active foreclosures (+12%) was primarily driven by FHA and VA loans, with foreclosures on conventional mortgages down 5% from the same time last year.

The number of VA loans in active foreclosure is up 61% from a year ago, when there was a moratorium on VA foreclosures.

Perhaps more noteworthy is the 30% rise in active foreclosures among FHA loans despite continuing loss mitigation programs.

FHA foreclosures will likely become a focal point in late 2025 and early 2026 as COVID-era loss mitigation provisions expire and are replaced with new, more restrictive workout options.

The bottom line is there will likely be an increase in delinquencies and foreclosures, but 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.

For full report, please click the source link above.

Fannie and Freddie: Single Family Serious Delinquency Rates Unchanged in July

Posted on September 4, 2025 by Safeguard

Industry Update
August 28, 2025

Source: CalculatedRisk Newsletter

Freddie Mac reported that the Single-Family serious delinquency rate in July was 0.55%, unchanged from 0.55% June. Freddie’s rate is up year-over-year from 0.51% in July 2024, however, this is below 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 July was 0.53%, unchanged from 0.53% in June. The serious delinquency rate is up year-over-year from 0.49% in July 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.

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), 1.33% are seriously delinquent (down from 1.36% the previous month).

For loans made in 2005 through 2008 (1% of portfolio), 1.90% are seriously delinquent (down from 1.93%).

For recent loans, originated in 2009 through 2025 (98% of portfolio), 0.48% are seriously delinquent (unchanged from 0.48%). 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.

FEMA Fire Management Assistance Declaration – California 2-7 Fire

Posted on September 4, 2025 by Safeguard

FEMA Alert
September 3, 2025

FEMA has issued a Fire Management Assistance Declaration for the state of California to supplement state, tribal and local recovery efforts in areas affected by the 2-7 Fire on September 2, 2025. The following counties have been approved for assistance:

Public Assistance:

Calaveras

California 2-7 Fire (FM-5612-CA)

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 – Montana Windy Rock Fire

Posted on August 29, 2025 by Safeguard

FEMA Alert
August 26, 2025

FEMA has issued a Fire Management Assistance Declaration for the state of Montana to supplement state, tribal and local recovery efforts in areas affected by the Windy Rock Fire on August 26, 2025. The following counties have been approved for assistance:

Public Assistance:

Powell

Montana Windy Rock Fire (FM-5611-MT)

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

Top 10 Metros with the Highest Zombie Foreclosure Rates in Q3 2025

Posted on August 27, 2025August 27, 2025 by Safeguard

Industry Update
August 21, 2025

Source: ATTOM

According to ATTOM’s newly released Q3 2025 Vacant Property and Zombie Foreclosure Report,1.4 million U.S. residential properties (1,385,902), or about 1.3% of all homes, sit vacant. This vacancy rate has held steady for three-and-a-half years amid a persistently high-demand housing market.

ATTOM’s latest vacant properties analysis also reveals that 222,318 U.S. properties were in foreclosure during Q3 2025. Of these, 3.38% (7,519) were “zombie” properties — homes vacated by their owners. That share was up slightly from 3.30% in the prior quarter and 3.14% in Q3 2024.

Also, according to ATTOM’s Q3 2025 report, from Q2 to Q3 2025, zombie property counts increased in 23 states, though generally by only modest single- or double-digit amounts. Another 23 states and the District of Columbia saw slight declines, while four states experienced no change.

The report also noted that among states with at least 50 zombie properties, the largest year-over-year increases were seen in Colorado (up 115%, from 27 to 58), Washington (up 114%, from 29 to 62), Iowa (up 84%, from 64 to 118), North Carolina (up 80%, from 50 to 90), and Oklahoma (up 72%, from 43 to 74).

In this post, we dive into the data behind ATTOM’s Q3 2025 Vacant Property and Zombie Foreclosure Report to uncover the top 10 U.S. metros, with at least 100,000 residential properties in Q3 2025 and at least 100 properties facing possible foreclosure, with the highest zombie foreclosure rates. Those metros include: Wichita, KS (12.7 percent of properties in the foreclosure process are vacant); Peoria, IL (12.3 percent); Youngstown, OH (10.1 percent); Cleveland, OH (9.5 percent); Toledo, OH (8.8 percent); Indianapolis, IN (8.6 percent); St. Louis, MO (7.9 percent); Davenport, IA (7.3 percent); Fort Wayne, IN (7.3 percent); and Pittsburgh, PA (7.2 percent).

For full report, please click the source link above.

Zombie Foreclosures Tick Up as U.S. Vacancy Rates Hold Steady

Posted on August 27, 2025 by Safeguard

Industry Update
August 20, 2025

Source: ATTOM

ATTOM, a leading curator of land, property data, and real estate analytics, today released its third-quarter 2025 Vacant Property and Zombie Foreclosure Report showing that 1.4 million (1,385,902) residential properties, about 1.3 percent of all homes in the United States, are vacant. The national vacancy rate has been consistent for three-and-a-half years as the nation has experienced a high-demand housing market.

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).

ATTOM’s analysis shows that 222,318 properties across the country were in the process of foreclosure in the third quarter of 2025. Of those pre-foreclosure homes, about 3.38 percent (7,519) were “zombie” properties, meaning they had been abandoned by their owner. That was slightly higher than the previous quarter, when 3.30 percent of pre-foreclosure homes were considered zombies, and than the 3.14 zombie rate posted in the third quarter of 2024.

“Vacant and zombie homes can hurt the value of surrounding properties and start a negative spiral in a local housing market,” said Rob Barber, CEO of ATTOM. “While we’ve seen the rate of zombie homes tick up a tiny bit this quarter, the overall rate of vacant homes and homes in the foreclosure process has remained remarkably steady.”

“While there remain some markets with worryingly high rates of vacancies, as a whole it appears that the nation’s buyers are quickly filling homes that become available,” he added.

States’ zombie foreclosure numbers remain small

Quarter-over-quarter, the number of zombie properties rose in 23 states, but mostly by single-digit or small double-digit amounts. Likewise, in the 23 states and the District of Columbia where there were fewer zombie properties in the third quarter than the second quarter, the changes were relatively small. Four states had no change in the number of zombie properties.

Among states with at least 50 zombie properties, those that saw the biggest year-over-year increase in the rate of pre-foreclosure homes that were considered zombies were Colorado (up 115 percent from 27 to 58), Washington (up 114 percent from 29 to 62), Iowa (up 84 percent from 64 to 118), North Carolina (up 80 percent from 50 to 90), and Oklahoma (up 72 percent from 43 to 74).

The biggest year-over-year decreases in zombie rates among states with at least 50 zombie properties were in Georgia (down 25 percent from 85 to 64), New Jersey (down 21 percent from 230 to 181), Illinois (down 17 percent from 780 to 646), and New York (down 10 percent from 1,630 to 1,461).

Northeastern states retain lowest vacancy rates

The states with the highest vacant property rate in the third quarter of 2025 were Oklahoma (2.4 percent), Kansas (2.3 percent), Alabama (2.2 percent), Missouri (2.2 percent) and West Virginia (2.1 percent).

The states with the lowest vacancy rates were New Hampshire (0.35 percent), Vermont (0.41 percent), New Jersey (0.51 percent), Idaho (0.51 percent), and Connecticut (0.54 percent).

Large metro areas tend to have better zombie rates than the nation

Of the 135 large metro areas in our analysis with at least 100,000 residential properties and 100 properties in the foreclosure process in the third quarter, 57 percent (77) had zombie foreclosure rates below the national average of 3.38 percent.

The large metro areas with the largest proportions of vacant pre-foreclosure homes or ‘zombie’ homes were Wichita, KS (12.7 percent of properties in the foreclosure process are vacant); Peoria, IL (12.3 percent); Youngstown, OH (10.1 percent); Cleveland, OH (9.5 percent); and Toledo, OH (8.8 percent).

The metro areas with the smallest proportions of zombie foreclosures were Nashville, TN (0 percent of properties in the foreclosure process are vacant); Atlantic City, NJ (0.3 percent ); Provo, UT (0.4 percent); Trenton, NJ (0.6 percent); and Raleigh, NC (0.7 percent).

Investor-owned properties more likely to be zombies

Nationwide in the third quarter of 2025 there were about 24.9 million investor-owned properties, of which 3.6 percent (882,336) were vacant.

The states with the highest vacancy rates in investor-owned properties were Indiana (7.2 percent), Illinois (6.1 percent), Oklahoma (5.9 percent), Alabama (5.9 percent), and Ohio (5.8 percent).

The states with the lowest vacancy rates in investor-owned properties were New Hampshire (0.9 percent), Vermont (1 percent), Idaho (1.2 percent), Utah (1.5 percent), and North Dakota (1.5 percent).

Two thirds of large zip codes outperformed national average

Nearly two thirds of the zip codes (1,376 out of 2,164) with at least 1,000 residential properties and 25 pre-foreclosure properties in the third quarter of 2025 had zombie foreclosure rates below the national average of 3.38 percent.

The zip codes with the highest zombie foreclosure rates were 91001 in Los Angeles, CA (80.8); 61603 in Peoria, IL (40 percent); 46201 in Indianapolis, IN (35.5 percent); 33708 in Tampa, FL (34.9 percent); and 44108 in Cleveland, OH (32.2 percent).

For full report, please click the source link above.

ICE First Look at Mortgage Performance: Delinquencies Ease in July as Foreclosure Activity Edges Higher

Posted on August 27, 2025 by Safeguard

Industry Update
August 25, 2025

Source: ICE Mortgage Technology

ICE Mortgage Technology, neutral provider of a robust end-to-end mortgage platform and part of Intercontinental Exchange, Inc. (NYSE: ICE), today released its July 2025 ICE First Look at mortgage delinquency, foreclosure and prepayment trends. The data shows that U.S. mortgage performance remains remarkably strong compared to pre-pandemic norms, marked by delinquencies declining on an annual basis.

“If you are looking for signs of a faltering economy, you won’t find them in July’s mortgage performance data,” said Andy Walden, Head of Mortgage and Housing Market Research at ICE. “New delinquency inflows were down -13% from June and -5% from the same time last year, with the national delinquency rate improving on an annual basis for the second straight month, breaking what had been a 13-month streak of consecutive increases.”

Key takeaways from the ICE First Look include:

National delinquency rate: The delinquency rate fell by eight basis points (bps) in July to 3.27%, a 9-basis-point improvement year over year (YoY) and still 58 basis points below its 2019 levels.

Serious delinquencies: Loans 90+ days past due but not in foreclosure held steady overall. Also, while serious delinquencies are up 30,000 YoY, it is the smallest annual increase since November, as the impacts from recent wildfires and last year’s hurricanes continue to fade.

FHA delinquencies: FHA loans remain the primary driver of stress in the market. While FHA delinquencies ticked down by 5 basis points in July, they are still 15 basis points above year-ago levels and now account for the majority (52%) of serious delinquencies nationwide.

Foreclosure activity: Foreclosure inventory rose 10% YoY, with starts increasing annually for eight straight months and foreclosure sales up in each of the past five months. Even so, the national foreclosure rate remains 35% below pre-pandemic norms.

Prepayment activity: Prepayments edged up slightly to 0.67% in July on a modest improvement in rates and are up more than 12% from a year ago.

For full report, please click the source link above.

FEMA Fire Management Assistance Declaration – Oregon Flat Fire

Posted on August 26, 2025 by Safeguard

FEMA Alert
August 23, 2025

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 Flat Fire on August 21, 2025. The following counties have been approved for assistance:

Public Assistance:

Deschutes
Jefferson

Oregon Flat Fire (FM-5610-OR)

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 – Hawaii Kunia Road Fire

Posted on August 22, 2025 by Safeguard

FEMA Alert
August 19, 2025

FEMA has issued a Fire Management Assistance Declaration for the state of Hawaii to supplement state, tribal and local recovery efforts in areas affected by the Kunia Road Fire on August 19, 2025. The following counties have been approved for assistance:

Public Assistance: