💰 55% Foreclosure Spike Unlocks Deals

Courthouse auctions stacking up in Q4 2024

Foreclosure starts jumped 55% year-on-year and completions climbed 25%, hitting levels we haven’t seen since 2009.

The pandemic forbearance shield is officially gone.

High interest rates have locked homeowners into their mortgages while simultaneously making refinancing impossible.

The pain isn’t limited to residential either….

Passive Cash-Flowing Properties

Buy shares of investment properties, earn rental income & appreciation for anywhere from $100 to $20k — let Arrived take care of the rest.

Browse Properties

---

Commercial real estate is cracking just as hard, with the CMBS special servicing rate jumping to 8.23% in October, the highest mark since 2013.

Banks are dumping troubled loans to special servicers at an accelerating pace, which means workout teams are about to be buried in hotel and retail assets that need resolution.

The math is simple: when servicers get overwhelmed, basis points get negotiable.

In this edition of the AltReports:

🏚️ Foreclosures Hit Decade Highs

🏢 CMBS Special Servicing Soars High

⚖️ October Foreclosures Surge Past Moratorium

📉 Mortgage Volume Crashes to 2013

🌴 Florida Foreclosure Crisis Explodes

💰 Sellers Slashing Prices Rapidly

Video of the Week: Treasury Boss Confesses: Your Home Will Pay America’s Debt

Chart of the Week: Maturing Loans Show Rising Risk

Podcast of the Week: How Land Replaced 2 Incomes in 9 Months

---

U.S. Housing Market Cracks Open with Foreclosures at Decade Highs

The housing market is snapping, foreclosure starts jumped 55% year-on-year and completions climbed 25%, hitting levels we haven’t seen since 2009.

With high interest rates locking out homeowners and pandemic forbearance expired, more homes are about to flood the market in fire-sale style.

💡 Investor Takeaway: Talk to foreclosure attorneys and courthouse staff in your target markets.

CMBS Special Servicing Rate Soars to 8.23%

Commercial real estate is falling apart, with the CMBS special servicing rate jumping to 8.23% in October—the highest since 2013.

Banks are offloading more troubled loans to special teams, setting the stage for fire-sale workouts and deep discounts.

💡 Investor Takeaway: Target special servicers handling hotel and retail CMBS to get on their distressed asset lists.

October Foreclosures Surge to Moratorium-Era High

Foreclosures jumped 12% in October to the highest level since the federal moratorium expired, showing the housing market is cracking.

Banks are seizing more homes and late mortgage payments are stacking up, flooding the market with distress.

💡 Investor Takeaway: Research upcoming auction properties in advance for the best deals.

Mortgage Volume Crash Sets Up Distressed Deal Flow

Loan originations tanked 45.8% year-over-year to hit the lowest volume since 2013 as sky-high rates shut out buyers and refinancers.

Lenders are slamming the brakes on credit, stranded borrowers in expensive loans, and once forbearance lifelines end we’ll see a tidal wave of missed payments.

💡 Investor Takeaway: Smaller lenders are often willing to sell distressed notes in bulk to clean up their balance sheets.

Florida’s Foreclosure Crisis Is a Distressed Investors’ Gold Mine

Florida homeowners missed record property tax payments in 2023, pushing the state to the top of the foreclosure list.

With courts clearing COVID backlogs, foreclosure auctions jumped 37% and 350,000 liens are now queued for sale.

💡 Investor Takeaway: Start monitoring target counties’ tax sale calendars today and snap up underpriced liens.

Buyers Losing Their Grip as Sellers Slash Prices

Sellers are chopping asking prices at the fastest pace since 2019 as buyer demand craters and homes sit unsold for weeks.

Buyers are suddenly in the driver’s seat, with fewer showings, slower sales, and record inventory swelling across markets.

💡 Investor Takeaway: Track pre-foreclosure filings and contact homeowners facing default directly.