Equity is shrinking for properties facing foreclosure as home price appreciation slows and turns negative in many markets nationwide.
In the latest episode of Disposition Download, Auction.com Head of Market Economics Daren Blomquist explains why this shift matters for teams focused on loss severity.
A key signal: In January, 45 percent of properties scheduled for foreclosure auction involved mortgages originated within the last five years. These recent-vintage loans typically carry less equity than older vintages, adding pressure as the market downshifts. You’ll discover:
- Why recent-vintage loans are rolling to completed auction at a higher rate
- How rising loan-to-value ratios affect foreclosure sale outcomes
- What lower sales rates mean for loss severity later this year and next year
- Where faster credit-bid adjustments help support stronger disposition performance
Watch the latest Disposition Download to see the data behind the trend.