What a strange "strong economy" - Foreclosure Inquiries Reach Highest Level Since 2020

Foreclosure inquiries rose for the third straight quarter to their highest level since March 2020, according to LegalShield. The company tracks homeowners seeking legal assistance before a foreclosure filing, acting as an early warning signal of a coming surge.

Historically, LegalShield's Foreclosure Index is a one- to two-quarter leading indicator of actual residential foreclosure filings reported by the Mortgage Bankers Association, with a 0.95 correlation.

The company's Consumer Stress Legal Index (CSLI), which tracks roughly 150,000 monthly requests for legal assistance, found foreclosure inquiries rose for the third consecutive quarter. The Foreclosure Index reached 52.5 in the second quarter, up 12.2% year over year and its highest quarterly reading since March 2020.

"The second quarter shows foreclosure pressure building, with homeowners contacting attorneys in numbers we haven't seen in years," Matt Layton, LegalShield's senior vice president of Consumer Analytics, said in a statement. "This data tracks actual consumer behavior, not a survey."

https://nationalmortgageprofessional.com/news/foreclosure-inquiries-reach-highest-level-2020