You Can Thank the Labor Market for the Major Drop in Foreclosures
First-time foreclosure starts — the first part of the process that can lead to a consumer losing their home — are at their lowest level since 2000, according to Black Knight Financial Services.
There were 77,657 first-time foreclosure starts in the second quarter of this year, 25 percent fewer than the second quarter of last year, according to Black Knight.
The major drop in foreclosures can be tied to a number of economic factors, but the major reason is the jobs market, according to Orawin Velz, an economist at Fannie Mae.
Velz says one of the most common reasons people fall behind on mortgage payments is unemployment.
“If you lose your job, it doesn’t take much to stop paying your mortgage,” she says.