More homeowners are experiencing financial difficulties, and the number of loans in forbearance increased by 0.34% in September. According to National Mortgage Professional, approximately 170,000 homeowners were in forbearance as of September, marking the fourth straight monthly rise. Despite this increase, foreclosure and delinquency rates were at historically low levels through Q2 2024, with foreclosure starts and sales decreasing by about 7% compared with the previous quarter.
The MBA tracked loans in forbearance by stage, reporting that 65.5% of total loans in forbearance this September were in the initial forbearance plan stage, while 20.5% were in a forbearance extension. The remaining 14% were forbearance re-entries, including re-entries with extensions.