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The start of 2022 has been rough for many people. With the pandemic hopefully winding down after more than two years, a new kind of epidemic has impacted the nation: foreclosures. Foreclosure rates are the highest they’ve been since the start of the pandemic, which is causing a lot of concern among homeowners. Let’s look at what precisely the foreclosure rates looked like pre-2022 and where they sit now.

Foreclosure rates pre-2022

Foreclosure rates during the pandemic remained relatively low. In 2018, the national foreclosure rate was 0.47 percent. This rate continued to decrease throughout the COVID pandemic, lowering to 0.36 percent in 2019, 0.16 percent in 2020 and 0.11 percent in 2021.

The pandemic was financially challenging for many people, with millions losing their jobs and savings. So, why did foreclosure rates decrease so much? This is partially due to all the government restrictions launched to help people hold on to their homes throughout the pandemic. However, as the severity of the pandemic died down, many of those government restrictions were lifted.

The Biden administration had put a moratorium on foreclosures, which was extended but eventually ended on July 31, 2021. There was also a moratorium for evictions on foreclosed borrowers, which finished on September 30, 2021. And lastly, the foreclosure restrictions the CFPB placed on mortgage providers ended in December 2021.

As these programs have ended, borrowers are no longer protected, and we’ve seen a natural increase in foreclosures.

What does the foreclosure landscape look like in 2022?

Foreclosures, including default notices, scheduled auctions and bank repossessions, rose 29 percent in January 2022 . In the first month of the year, lenders repossessed or started the repossession process on more than 15,000 homes. And that rising trend shows no sign of slowing down. February 2022 saw a 129 percent increase from February 2021.

However, it’s important to point out that even though these rates are at an all-time high for the pandemic, they’re still low when looking at pre-pandemic levels. The January 2022 foreclosure rate was less than half what it was in January 2020. Numbers may be on the rise, but they aren’t as high as they could be when you look over the last decade.

Foreclosure rates by state

Nationally, the foreclosure rate for January 2022 was one in every 5,922 homes.

You can find the February 2022 foreclosure rates for each state below:

Alabama (24th)

Alabama had 321 foreclosures, for a rate of one in every 7,025 homes.

Alaska (48th)

Alaska had only 10 foreclosures (but keep in mind it’s also the third-least populated state). The exact foreclosure rate was one in every 31,467 households.

Arizona (15th)

Arizona had 516 foreclosures out of 3,003,286 homes in February 2022. This put its foreclosure rate at one out of every 5,820 homes.

Arkansas (35th)

Arkansas saw 136 foreclosures in February 2022. The exact rate was one out of every 10,076 homes.

California (10th)

California had a total of 2,927 homes foreclosed on in February 2022. This translates to a rate of one in every 4,843 households.

Colorado (32nd)

Colorado had 254 out of 2,386,475 homes go into foreclosure, or one in every 9,396 homes.

Connecticut (12th)

Connecticut saw 281 foreclosures in February 2022. This translates to a foreclosure rate of one in every 5,397 households.

Delaware (7th)

Delaware had a total of 133 foreclosures in February 2022, and the exact rate was one out of 3,257 homes.

Florida (9th)

In February 2022, Florida had 2,833 homes go into foreclosure. This translates to a rate of one in every 3,335 households. Florida is the third-most populated state in the country, which partially explains why its foreclosure numbers are so high.

Georgia (14th)

The state saw 762 out of 4,283,477 houses foreclosed on. Georgia’s exact foreclosure rate was one out of every 5,621 homes.

Hawaii (25th)

Despite being the 40th-most populated state, Hawaii only ranks 25th in foreclosure rates in the nation. A total of 75 homes went into foreclosure, for a rate of one in 7,236 households.

Idaho (39th)

In February 2022, Idaho saw 62 households go into foreclosure. That makes the state foreclosure rate one in 11,671 homes.

Illinois (2nd)

Illinois had a total of 2,126 homes out of 5,360,315 homes go into foreclosure. This makes Illinois’ foreclosure rate one out of every 2,521 homes.

Indiana (8th)

Indiana saw a total of 885 homes foreclosed on in February 2022. The exact foreclosure rate for the state is one in every 3,262 households.

Iowa (17th)

Iowa saw 236 out of 1,397,087 households go into foreclosure. The state had a rate of one in every 5,920 homes.

Kansas (43rd)

The 35th-most populated state in the country, Kansas, took the 43rd spot in foreclosure rates in February. In total, Kansas had 78 homes foreclosed on. The exact foreclosure rate was one in every 16,324 households.

Kentucky (42nd)

Kentucky had 134 out of 1,983,949 homes go into foreclosure in February. This puts its foreclosure rate at one in every 14,806 homes.

Louisiana (33rd)

A total of 219 homes were foreclosed on in Louisiana in February, a rate of one in every 9,406 households.

Maine (13th)

While Maine has the ninth-lowest population in the country, it took the 13th spot in foreclosure rates (the same ranking as January). This state had a total of 136 foreclosures in February, and the foreclosure rate was one in every 5,462 homes.

Maryland (6th)

Out of 2,448,422 households, 779 were foreclosed on in just one month. This makes Maryland’s foreclosure rate one in every 3,143 homes.

Massachusetts (27th)

A total of 374 out of 2,897,259 homes were foreclosed on. As a result, Massachusetts’ foreclosure rate stands at one in every 7,747 homes.

Michigan (11th)

In February 2022, Michigan had 857 foreclosures. The state’s foreclosure rate for the month was one out of every 5,363 household units.

Minnesota (37th)

Minnesota closed on 219 out of 2,438,203 homes. In total, its foreclosure rate for the month sat at one in every 11,133 homes.

Mississippi (34th)

Mississippi had 132 homes foreclosed on out of the total 1,322,808 housing units in the state. This translates to a foreclosure rate of one in every 10,021 households in February 2022.

Missouri (22nd)

Missouri saw 411 out of 2,790,397 home units foreclosed in February 2022. In total, Missouri had a rate of one in every 6,789 homes foreclosed.

Montana (44th)

Montana’s population and foreclosure rate aligned; the state has the 44th-largest population. In total, the state saw 26 foreclosures with a rate of one in every 19,622 homes.

Nebraska (19th)

The state saw 132 out of 837,476 houses foreclosed on that month. This translates to a foreclosure rate of one in every 6,345 homes.

Nevada (5th)

A total of 402 foreclosures were filed in February out of 1,250,893 households. Nevada has a foreclosure rate of one out of every 3,112 homes.

New Hampshire (38th)

The state only saw 56 foreclosures in February, at a rate of one in every 11,334 households.

New Jersey (1st)

New Jersey held the top spot for the highest foreclosure rates in the country in January and February 2022, with 1,441 out of 3,616,614 homes going into foreclosure in February. This gives New Jersey a foreclosure rate of one in every 2,510 homes.

New Mexico (21st)

New Mexico maintained the same position in January and February. The state foreclosed on 141 homes in February for a rate of one out of every 6,652 households.

New York (29th)

In February 2022, the state saw 1,015 out of 8,322,722 homes foreclosed on. This translates to a foreclosure rate of one in every 8,200 homes.

North Carolina (18th)

A total of 768 out of 4,627,089 homes went into foreclosure in February 2022. As a result, North Carolina’s foreclosure rate is one out of every 6,025 households.

North Dakota (49th)

The state only had 10 foreclosures in February 2022, for a rate of one in every 37,306 homes.

Ohio (3rd)

Ohio had 1,857 foreclosure filings out of 5,202,304 homes. This gives the state a foreclosure rate of one in every 2,801 households.

Oklahoma (26th)

The state had 234 homes file a foreclosure in February 2022. Oklahoma’s foreclosure rate is one out of every 7,400 households.

Oregon (45th)

In February, Oregon only had 73 foreclosures. This translates to one in every 24,232 homes being foreclosed on.

Pennsylvania (20th)

Pennsylvania saw 876 out of 5,693,314 homes foreclosed on in February 2022. The state had a total foreclosure rate of one in every 6,499 households.

Rhode Island (30th)

Rhode Island came in with the 30th-highest foreclosure rate in the country. The state saw 53 out of 468,335 households foreclose in February. This translates to a foreclosure rate of one in every 8,837 homes.

South Carolina (4th)

The state had 762 foreclosures for a rate of one in every 3,001 homes.

South Dakota (50th)

South Dakota had the fewest foreclosures in the country, with only five homes foreclosed on in February. This put the state in last place. South Dakota’s foreclosure rate was one in every 77,714 households.

Tennessee (40th)

Tennessee saw 249 out of 2,963,486 homes foreclosed on in February. This makes the state’s foreclosure rate one in every 11,902 homes.

Texas (23rd)

Texas had 1,588 foreclosures in just one month, with a foreclosure rate of one in every 6,887 homes.

Utah (16th)

Out of 1,087,112 homes, the state had 184 foreclosures in one month. The overall foreclosure rate was one in every 5,908 houses.

Vermont (46th)

Vermont didn’t have many foreclosures. In total, only 13 homes were foreclosed on in February 2022 and the rate was one in every 25,769 households.

Virginia (31st)

A total of 387 homes had foreclosures in February out of the state’s 3,514,032 households. This translates to a foreclosure rate of one in every 9,080 homes.

Washington (41st)

Despite ranking in the 13th spot for population, the state of Washington had a total of only 244 homes go into foreclosure in February, for a rate of one in every 12,732 homes.

West Virginia (47th)

West Virginia had 33 homes go into foreclosure in February 2022. In total, the state saw a foreclosure rate of one in every 27,036 homes.

Wisconsin (28th)

Wisconsin saw 343 out of 2,694,527 homes foreclose in February 2022. This means the Dairy State’s foreclosure rate was one in every 7,856 households.

Wyoming (36th)

Although Wyoming has the smallest population in the country, it still had 26 foreclosures in one month, for a rate of one in every 10,648 homes.

What to do if you are facing foreclosure

If you’re facing foreclosure, the most important thing you can do is be proactive. There’s a chance it might not be too late and you can still work with your lender to keep your home. Unfortunately, if you’ve waited too long and the foreclosure is unstoppable, you can still take steps to make sure the minimum damage is done to your finances and your credit and even look into removing the foreclosure from your credit report, if possible.

How to work on your credit

Whether you came close to foreclosure or actually had one happen, your credit likely took a significant hit in the process. Poor credit can seep into many areas of your life, preventing you from getting new loans and credit and even potentially impacting your ability to get a job or a lease.

Luckily, credit is something you can rebuild. With the help of the credit advisors at CreditRepair.com, you can take another look at your credit report and search for any incorrect items to remove, as well as learn more about the credit repair process to help you get back on track. The help is right there for you; all you have to do is take advantage of it.

Note: The information provided on CreditRepair.com does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only.

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Foreclosures happen, and they’re a lot more common than most people realize. In 2020, there were 214,323 active foreclosure cases nationwide. Foreclosure is unpleasant both emotionally and financially, and most people would like to move on from it as soon as possible. The simple truth is that, usually, a foreclosure will fall off your credit report in seven years. Now, let’s look at if there’s anything you can do to make it happen faster.

What is a foreclosure?

A foreclosure is a legal process in which a lender repossesses a mortgaged property. Foreclosures occur when the borrower has stopped making their payments or violated their contract in other ways. When this happens, it’s known as a borrower “defaulting on their mortgage.” Lenders have the right to take back the property in an effort to regain the balance owed on the mortgage loan. Often, lenders will force a sale of the property to recover their losses.

How many missed payments or contract violations that can result in a foreclosure varies from state to state and per each mortgage contract. However, most lenders issue a notice of intent to foreclosure after 90 days of missed payments.

How long will a foreclosure stay on my credit report?

A foreclosure can stay on your credit report for seven to ten years, starting from the date of the first missed mortgage payment that resulted in the foreclosure.

A foreclosure will always impact your credit score as it’s seen as a significant negative item on your credit profile. However, how much it will affect your credit depends on where your credit score stood before the foreclosure. Unfortunately, the higher your credit score was before the foreclosure, the more it will be impacted.

Generally speaking, most people see a drop in their score of over 100 points. Each of the missed monthly mortgage payments leading up to the foreclosure will result in your credit score dropping. By the time the foreclosure appears on your report, you’ve already dropped many points, and this new negative item could drag you down further.

It can take between seven and 10 years for your credit score to recover entirely from the foreclosure. A foreclosure on your credit report will often keep your score down for many years even if you make on-time payments to all your other lenders. This is precisely why a foreclosure is so damaging to your credit and can take so long to recover from.

Additionally, even when your credit score eventually recovers, having a foreclosure on your credit report may impact your ability to get approved for a new mortgage.

Can I get a foreclosure removed from my credit report?

In most cases, an accurate foreclosure can’t be removed from your credit report. However, there are some specific exceptions to this rule.

1. Mortgage lender goes out of business

If a mortgage lender goes out of business, the foreclosure can potentially be removed from your credit report. This process isn’t automatic, so you’ll have to find out if the lender went out of business on your own and, if so, request a review of your credit report.

2. Voluntary dismissal of the case

Your foreclosure can be removed from your credit report if the lender voluntarily dismisses the foreclosure lawsuit. This is most common in states where the homeowner can propose a voluntary foreclosure, also known as a deed in lieu of foreclosure. A deed in lieu of foreclosure is when a homeowner voluntarily transfers the property title to the bank to be released from further mortgage obligations.

3. Lacking documentation

Any information on your credit report that can’t be verified with supporting documentation can be removed, including foreclosures. If you start a dispute and the credit bureaus can’t find the documentation, they might consider removing the foreclosure.

How to deal with an inaccurate foreclosure

If you have an inaccurate foreclosure on your credit report, you must act promptly.

1. Identify any errors on your reports

Order a free copy of your credit report from all three major credit bureaus. Check each report to see if there are any errors in the foreclosure balance, the dates, the lender or the account number. If you find any inaccurate information, be sure to write it down.

2. Start a credit dispute

Start a credit dispute to address any errors you find. If there are errors on all three credit bureau reports, you’ll want to file a dispute with each bureau.

Write a dispute letter to the credit bureaus in question that includes information on why you’re challenging the data, provides proof and makes a clear request for the information to be updated or removed. The Federal Trade Commission has a sample letter you can use if you don’t know where to start.

After you start a dispute, the bureaus will have 30 days to verify the accuracy of the entry and respond by correcting it or removing it from your credit report. This timeframe can sometimes be extended an additional 15 days.

3. Contact your lender

If the credit bureaus don’t remove the foreclosure from your credit report, your next approach should be to reach out to the lender. All lenders are obligated to investigate disputes. Write the same detailed letter you did to the credit bureaus and ask the lender to remove the entry from your credit report due to inaccuracies. Make sure to give them a 30-45 day deadline to do so.

If they can’t verify the information or don’t want to spend the time verifying, they might choose to simply remove the entry.

4. Or work with a credit repair company

Removing foreclosures from your credit report requires filing a dispute with each of the three major credit bureaus. These credit bureaus have the right to dismiss any disputes they deem frivolous. The credit bureaus examine each dispute’s communication and proof before deeming it worthy of being considered. As a result, it’s essential you write disputes carefully, in a way that will resonate well with the bureaus.

To help with this, many people choose to work with a legitimate credit repair company. These organizations have dealt with the credit bureaus countless times and know how to navigate their processes to have the best chance of getting a dispute request reviewed.

How to recover from a foreclosure

If you can’t get the foreclosure removed, there are steps you can take to recover from it.

1. Work to improve your spending and create a budget

You might not be able to undo the foreclosure, but you can keep up with your other existing lenders. Make sure you pay all your lenders on time and in full whenever possible.

Additionally, look into budgeting and see if it’s right for you. A budget can help you control your spending and better stay on top of your finances.

2. Use a credit advisor or credit repair company

Waiting around for seven to 10 years for the foreclosure to fall off your credit report can feel like a long time. But in that time, you can be proactive and choose to improve your credit in other areas. There are professional services, such as credit advisors and credit repair companies that can help you fix your credit where possible. CreditRepair.com helps individuals review their credit reports for inaccuracies and file disputes if any are found.

3. Track your credit scores and reports on a regular basis

Every 12 months, you’re entitled to a free copy of your credit report from each credit bureau. Because a foreclosure drags your credit score down, you’ll want to make sure nothing else keeps your score low. You should check your credit reports regularly so you can watch out for errors or new negative items.

Your credit score is also a good indicator of what’s going on with your credit report. If you notice a sudden dip in your score, it likely means a new negative item has been added to your report.

How to avoid a foreclosure

If you haven’t gone through foreclosure yet, there might still be hope that you can avoid it. Consider these steps:

1. Use HUD resources

The U.S. Department of Housing and Urban Development (HUD) has many resources that offer recommendations on avoiding foreclosures. Additionally, the HUD gives access to counselors who can also give advice.

2. Reach out to the lender and ask for options

Many lenders don’t want to complete a foreclosure because there’s a risk they’ll sell the home for less than the remaining balance on the mortgage. If you feel you can’t pay your bills, reach out to your lender and ask what your options are. You may be able to refinance for a longer loan term, bringing down your monthly payment. Your lender will especially be willing to work with you if you approach them before you have any missed payments.

3. Respond to lenders when they reach out

Your lender will give you a notice of intent to foreclose when you’ve missed a certain period of payments. As soon as you receive this notice—or even earlier when your lender reaches out about missed payments—make sure to respond to them. A lender can’t work with you on finding a solution if you stop communicating with them.

Reviewed by Makeda Jackson, Credit Professional for CreditRepair.com.

Makeda Jackson has worked as a credit professional with the CreditRepair.com team for the last few years. Her goal is to continue the fight for everyone to have a fair, and accurate credit profile and for a chance at a better quality life. Her biggest achievement comes with the success of the hundreds of credit advisors that she has had the pleasure of educating. Her commitment to integrity and valuable service is extended out to both CreditRepair.com customers and to the people in her own team. Outside of work, Makeda loves to do outdoor activities, spend time with her family, and volunteer with her team for charity events.

Note: The information provided on CreditRepair.com does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only.

The post How to remove a foreclosure from your credit report appeared first on CreditRepair.com.

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There are certainly many things that can negatively impact your credit score, some more than others. If you are worried about your credit or are trying to maintain a good score, it is helpful to know items on your credit report could cause the biggest impact on your score.

Below we’ve outlined four issues that could cause the biggest drop in your credit score. We have also listed the average point loss for each item.

How Much Does a Bankruptcy Lower Your Credit Score?

The higher your starting score, the more points you’ll lose for filing for bankruptcy. For a person with a credit score of 680, filing for bankruptcy will lower your score by 130-150 points. For a person with a score of 780, filing for bankruptcy will cost you 220-240 points.

How Much Does a Foreclosure Lower Your Credit Score?

According to FICO, if your credit score is 680, a foreclosure will drop your credit score on average by 85 to 105 points. If your credit score is excellent, at 780, a foreclosure will drop your score by 140 to 160 points. In other words, the higher your credit score, the more your score will be affected.

How Much Does a Late Payment Lower Your Credit Score?

One late payment could have a more significant impact on higher credit scores. According to FICO data, a 30-day delinquency could cause as much as a 90- to 110-point drop on a FICO Score of 780 for a consumer who has never missed a payment on any credit account.

How Much Does a Car Repossession Lower Your Credit Score?

Having your vehicle repossessed could cause a 100-point drop in your credit score. And late payments, collections, and public records generally all stay on your credit for about seven years, according to myFICO.com.

For most people, the above issues are unavoidable but in certain circumstances, it is a choice to make depending on your financial situation. If you are swimming in debt and are debating filing for bankruptcy, for instance, you may want to consider a few things first. In that scenario, if your credit score is already low due to late payments, high debt-to-income ratio, and delinquent accounts, you could potentially improve your credit quicker by filing for bankruptcy as it would not have as big an impact on your score but would give you the fresh start needed to start rebuilding your credit.

For assistance with credit repair or counseling, contact Credit Absolute.

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