Elspeth Spransy, VP of field services at SingleSource Property Solutions, emphasized the importance of local resources in mitigating the impact of foreclosures on neighborhood conditions.
“Foreclosures affect neighborhood conditions, so you need the best and most knowledgeable local resources to support you,” Spransy said. “Having the right tools in place before the increase in foreclosures will help servicers respond quickly and effectively. Now is the time to ensure that property preservation service vendors are ready to perform in this highly regulated environment.”
The number of loans in active foreclosure, meanwhile, rose by 7,000 to 219,000, albeit remaining 23% below pre-pandemic levels.
Donna Schmidt, founder and managing partner at DLS Servicing, attributed this trend to inflationary pressures impacting housing. Schmidt emphasized the need for mortgage servicers to enhance their loss mitigation efforts, advocating for a comprehensive approach that includes home retention options, short sales, and deeds in lieu of foreclosure.
“A robust, well-rounded loss mitigation approach will help to reduce potential servicing losses,” Schmidt stated. “But servicers must be proactive and persistent through the foreclosure process.”
