That means it is more likely banks and mortgage servicers have an incentive to restructure a loan, or tack those missed payments onto the back end of the mortgage. It also takes time to start foreclosure proceedings, at least 120 days per federal law, plus time for court proceedings.

Will there be a wave of foreclosures in 2021?

Nationally, foreclosure activity has increased 9% in the first quarter of 2021, and California was among the top states that saw the greatest quarterly increase in foreclosure starts, up 36%.

Will foreclosures increase in 2021?

ATTOM Data Solutions expects at least 200,000 defaults in 2021 and a 70% increase in foreclosures over the subsequent two years ─ a significant increase from current levels, but a far cry from the 6 million foreclosures following the 2007 crash.