Foreclosures reportedly expected to remain 'extremely uncommon' until at least 2022


Foreclosures are "almost certain to remain extremely uncommon" for home owners "until 2022" at the earliest, even though the federal government's pandemic-related moratorium on the practice is set to end later this month, Axios reports.
For starters, the Consumer Financial Protection Bureau is proposing a new rule called Regulation X that "would effectively ban foreclosures until the end of 2021," and even though it's not yet in force, Axios notes, the CFPB and state regulators "have made it clear to servicers that they will take a very dim view of any attempts to foreclose on homes in the interim."
Plus, the "overwhelming majority" of the 2.1 million homeowners who are still in forbearance have "substantial positive equity" in their homes, Black Knight economist Andy Walden told Axios. "It's almost the exact opposite of what we saw during" the 2008 financial crisis when millions of homeowners were underwater on their mortgages, he said. Read more at Axios.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.
-
El Palace Barcelona: old-world luxury in the heart of the city
The Week Recommends This historic hotel is set within a former Ritz outpost moments from the Passeig de Gràcia
-
The best history books to read in 2025
The Week Recommends These fascinating deep-dives are perfect for history buffs
-
July 4 editorial cartoons
Cartoons Friday’s political cartoons include the danger of talking politics at a family picnic, and disappearing Medicaid entitlements
-
Nobody seems surprised Wagner's Prigozhin died under suspicious circumstances
Speed Read
-
Western mountain climbers allegedly left Pakistani porter to die on K2
Speed Read
-
'Circular saw blades' divide controversial Rio Grande buoys installed by Texas governor
Speed Read
-
Los Angeles city workers stage 1-day walkout over labor conditions
Speed Read
-
Mega Millions jackpot climbs to an estimated $1.55 billion
Speed Read
-
Bangladesh dealing with worst dengue fever outbreak on record
Speed Read
-
Glacial outburst flooding in Juneau destroys homes
Speed Read
-
Scotland seeking 'monster hunters' to search for fabled Loch Ness creature
Speed Read