Most default servicers expect foreclosures to increase in 2020 despite no economic recession, according to a recent Auction.com survey.
Auction.com announced the results of its 2020 Default Servicing Insights report, based on a survey of more than 40 of the nation’s largest bank and nonbank default servicing clients along with representatives from government agencies involved in servicing and disposition of distressed properties.
The nation’s largest online real estate transaction marketplace focused exclusively on the sale of bank-owned and foreclosure properties, Auction.com brings a breadth of quality assets to the market, attracting prospective buyers through world-class marketing and leveraging a scalable technology platform to conduct transactions in a transparent, efficient manner.
The company’s clients collectively account for 87 percent of all mortgage servicing volume nationwide based on an analysis of mortgage servicing data from Inside Mortgage Finance.
High-level findings from the survey:
• Most respondents said they do not expect an economic recession in 2020.
• Two-thirds expect their foreclosure and REO inflow to increase in 2020.
• 89 percent expect an increase in foreclosure and REO inflow from government-insured loans.
• The majority expect foreclosure and REO inflow to increase in five of seven U.S. regions.
• 41 percent plan to price more aggressively to sell to third parties at foreclosure auction in 2020, with the remainder planning either no change in pricing strategy or less aggressive pricing.
• Eight out of 10 consider REO holding costs either the primary or an important factor in determining their foreclosure auction pricing strategy.