The foreclosure process ground to a halt in the second quarter, as lenders were banned from foreclosing on federally-backed mortgages and the court system largely closed. While we expect most of those who applied for forbearance due to COVID-related furloughs to resume payments, the ban also protected borrowers who missed payments for other reasons. We expect lenders will start to work through that backlog in the final quarter of the year, pushing the foreclosure start rate to 0.5%, a seven-year high.
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