According to media reports, foreclosure filings doubled in the United States in 2022. Earlier this week on March 1st 2023 in Los Angeles County 101 Notice of Defaults were filed. These alarming statistics may have some people wondering if we’re in for another wave of foreclosures. However, taking a closer look at the data and putting things into perspective is essential.

First, while a doubling of foreclosure filings may sound like a significant increase, it’s important to remember that it’s nowhere near the levels we saw during the housing market crash of 2008. In fact, in some areas, the number of foreclosures in 2022 was meager.

One reason is that homeowners today have more equity than ever. In addition, many people currently in the market have taken advantage of historically low interest rates to refinance their mortgages and build up their equity. This means that even if they faced financial difficulties, they would still have a significant cushion to protect themselves from foreclosure.

Another factor is that lending standards have become stricter in recent years. Before the housing market crash, it was easy for people to obtain mortgages they couldn’t afford, leading to a flood of foreclosures when the market turned. Today, lenders are much more careful about whom they lend to and require stricter documentation and financial qualifications. This helps ensure that people get mortgages they can afford and reduces the likelihood of foreclosures.

This is good news for anyone worried about another wave of foreclosures. While it’s true that there has been an increase in foreclosure filings, it’s important to keep things in perspective. Homeowners today are in a much stronger financial position than they were in 2008. So even if they face financial difficulties, they are much less likely to lose their homes to foreclosure.

If you’re an investor looking for a screaming foreclosure deal, you may be disappointed by the current market conditions. With homeowners holding more equity than ever, finding a bargain in the foreclosure market is tough. However, if you’re a consumer worried about a foreclosure boom, you can rest easy knowing that the data suggests otherwise.

If you have questions about the local real estate market or want more information about foreclosures, don’t hesitate to get in touch with me by phone or email. I look forward to hearing from you!