Foreclosures saw a sizeable spike in January but dropped 24% in February. This is in line with how serious delinquencies fell by 72,000 as borrowers left forbearance plans and returned to making payments. Louisiana, Mississippi and Alabama are the top three states with seriously delinquent mortgages at over 90 days past-due.
Foreclosure starts were at 25,000 last month, but this is still 25% below pre-pandemic levels. By the end of February, Black Knight noted a stark 39,000 increase in active foreclosures.
Likewise, pre-payment activities dropped another 11% in February, almost achieving the lowest percentage in three years as rising rates continued to impact refinance volumes.
Black Knight is expected to provide a more in-depth review by April 04.