Las Vegas is a prime example of how economic growth has aided in the recovery and helped stabilize foreclosures. After recovering from the recession, Southern Nevada's housing market was on solid ground with strong building projects in place and tourism and home sales skyrocketing, foreclosures were a distant memory," says Teta. "According to our annual foreclosure comparison data, lenders repossessed roughly 1,500 homes in the Las Vegas area in 2019, a stark comparison to 35,000 a decade earlier in 2009."

Not every market saw  a decrease in foreclosure activity. Baltimore, Honolulu and Allentown, Pennsylvania, still have foreclosure rates above pre-recession levels. In Baltimore, for example, one of every 565 homes has a foreclosure filing. "Filings are continuing to increase, there is a heightened cause for concern, especially as the fallout from the coronavirus hits," explains Teta. "Therefore, those areas will deserve a close watch over the coming months."

Of course, the coronavirus pandemic will likely end this growth. Foreclosures are expected to increase this year as a result of the severe unemployment loss related to the pandemic. The number of foreclosures will largely depend on the permanent job loss once shelter-in-place restrictions end. "Right now, lenders are offering moratoriums and deferrals on mortgage payments and holding off on pursuing homeowners who fall behind on payments, but that can only last but so long," says Teta.

Emergency measures will end before the economy has recovered, for those unemployed and benefitting from forbearance, there will be a gap between mortgage repayment and new employment opportunities. "At some point, banks are going to need mortgage holders to pay what they owe and go after those who don't," says Teta. "At that point, we should get a clear idea of how much foreclosures rise because of the economic fallout from the pandemic."