{"id":124594,"date":"2026-05-07T15:43:16","date_gmt":"2026-05-07T15:43:16","guid":{"rendered":"https:\/\/christiancorner.us\/index.php\/2026\/05\/07\/trump-ends-federal-foreclosure-protection-measures-prepare-for-a-wave-of-deals-coming-to-market\/"},"modified":"2026-05-07T15:45:18","modified_gmt":"2026-05-07T15:45:18","slug":"trump-ends-federal-foreclosure-protection-measures-prepare-for-a-wave-of-deals-coming-to-market","status":"publish","type":"post","link":"https:\/\/christiancorner.us\/index.php\/2026\/05\/07\/trump-ends-federal-foreclosure-protection-measures-prepare-for-a-wave-of-deals-coming-to-market\/","title":{"rendered":"Trump ends federal foreclosure protection measures \u2013 prepare for a wave of deals coming to market"},"content":{"rendered":"<p>\n<\/p>\n<div id=\"post-content\" :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n                            <!-- Table of contents: mobile --><\/p>\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\">\n                    <button x-on:click=\"open = !open\" class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n                        <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/svg><\/p>\n<p class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">in this article<\/p>\n<p>                    <\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">Keep your checkbook handy: A tsunami of foreclosures is about to hit the market.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Although we&#8217;ve heard these rumors before, this time it may be different. That&#8217;s because President Donald Trump ended a key Biden-era foreclosure protection program <\/span><span data-preserver-spaces=\"true\">was designed<\/span><span data-preserver-spaces=\"true\">    To help struggling homeowners stay in their homes.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The continued increase in foreclosures may be a sign of things to come. With small landlords and flippers driven out of the market by corporations, interest rates and high prices, this could mark the beginning of a very different landscape for acquisitions.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">What&#8217;s changed in Washington right now\u2014and why it matters<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">A federal subsidy that allows distressed homeowners to reduce or temporarily cover mortgage payments. <\/span><span data-preserver-spaces=\"true\">was injured<\/span><span data-preserver-spaces=\"true\">The<\/span> <em><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.wsj.com\/economy\/housing\/a-federal-housing-handout-has-ended-foreclosures-will-follow-a27f8783?mod=real-estate_lead_story\"><span data-preserver-spaces=\"true\">wall street journal<\/span><\/a><\/em><span data-preserver-spaces=\"true\">    Informed. The subsidies introduced during the Biden administration in the wake of the COVID-19 crisis served as a backstop to prevent recapture. Experts predict a wave of foreclosures <\/span><span data-preserver-spaces=\"true\">is set<\/span><span data-preserver-spaces=\"true\">    To follow.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">&#8220;The story here is that people have been distressed over the last five years, but loss mitigation stopped the natural clearing cycle,&#8221; told John Comiskey, founder of Reverse Engineering Finance, which tracks the performance of 7 million of the 8 million outstanding FHA loans captured in Ginnie Mae&#8217;s mortgage-backed securities data. <\/span><em><span data-preserver-spaces=\"true\">magazine<\/span><\/em><span data-preserver-spaces=\"true\">. &#8220;The flood behind the dam has to be released.&#8221;<\/span><\/p>\n<div class=\"justify-center \" x-data=\"{ IabAdad_block_: popAd(('r720x90'), '1') }\" :class=\"IabAdad_block_.linkURL ? 'flex pt-8' : 'hidden'\">\n<div class=\" hidden sm:block\"><\/div>\n<div class=\"block sm:hidden\">\n          <img class=\"m-0\" :src=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.r320x50\" :alt=\"IabAdad_block_.r320x50Alt\" loading=\"lazy\" fetchpriority=\"low\"\/>\n        <\/div>\n<\/p><\/div>\n<h2><span data-preserver-spaces=\"true\">Foreclosures are at their highest level in six years<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">That release has probably already started. <\/span><span data-preserver-spaces=\"true\"> <\/span><em><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.wsj.com\/economy\/housing\/high-housing-costs-are-pushing-foreclosures-to-a-six-year-high-266c56c0?mod=article_inline\"><span data-preserver-spaces=\"true\">magazine<\/span><\/a> <\/em><span data-preserver-spaces=\"true\">Foreclosure filings are reported to have reached their highest level in six years, with some 119,000 properties receiving some <\/span><span data-preserver-spaces=\"true\">a kind of<\/span><span data-preserver-spaces=\"true\">    Foreclosure notices in the first quarter of 2026, which represents a 26% increase in foreclosures year over year, according to data and analytics provider ATTOM.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">A confluence of factors is driving the figures, including high <\/span><span data-preserver-spaces=\"true\">property taxes<\/span><span data-preserver-spaces=\"true\">    and insurance, as well as other non-mortgage-related factors related to the cost of living crisis.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cForeclosure activity increased in the first quarter, with solid year-over-year gains recorded in both initiations and completed foreclosures,\u201d said Rob Barber, CEO of ATTOM.<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/news\/trends\/foreclosures-rising-data-attom-q1-2026\/\"><span data-preserver-spaces=\"true\">    realtor.com<\/span><\/a><span data-preserver-spaces=\"true\">. However, foreclosure levels remain around pre-pandemic levels <\/span><span data-preserver-spaces=\"true\">not expected<\/span><span data-preserver-spaces=\"true\">    To continue for a long time, <\/span><em><span data-preserver-spaces=\"true\">magazine <\/span><\/em><span data-preserver-spaces=\"true\">Report.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cAlthough volumes remain below historical peaks, continued growth, particularly in starts and bank repayments, suggests that financial pressures are building for some homeowners and may signal a change in housing market dynamics,\u201d Barber said.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Where foreclosures are having the biggest impact<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Unlike the 2008 financial crash, where overleveraged homes made foreclosure headlines in Sunbelt cities like Las Vegas, Florida, and Atlanta, the Midwest is also seeing REO activity, with Indiana currently experiencing the highest foreclosure rates in the country. There, 1 in every 739 housing units received a filing in the first quarter (nationally, it&#8217;s 1 in every 1,211 units), followed by South Carolina and Florida.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">According to ATTOM, completed foreclosures (REOs) are up 45% year over year compared to the first quarter, showing that more properties are moving through the foreclosure process. <\/span><span data-preserver-spaces=\"true\">be repossessed<\/span><span data-preserver-spaces=\"true\">. bad news for <\/span><span data-preserver-spaces=\"true\">flippers<\/span><span data-preserver-spaces=\"true\">    Or <\/span><span data-preserver-spaces=\"true\">BRRRR<\/span><span data-preserver-spaces=\"true\">    Investors seeking to refinance believe that the deeper the foreclosure trough, the more home values \u200b\u200bcan fall.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Realtor.com&#8217;s<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/research\/january-2026-data\/\"><span data-preserver-spaces=\"true\">    January 2026 Housing Report<\/span><\/a><span data-preserver-spaces=\"true\">    30 of the 50 largest housing markets saw price declines by May 2025 numbers<\/span><span data-preserver-spaces=\"true\">Although<\/span><span data-preserver-spaces=\"true\">    decline <\/span><span data-preserver-spaces=\"true\">not specifically attributed<\/span><span data-preserver-spaces=\"true\">    For affordability rather than foreclosure, which is <\/span><span data-preserver-spaces=\"true\">due to<\/span><span data-preserver-spaces=\"true\">    houses <\/span><span data-preserver-spaces=\"true\">to stay<\/span><span data-preserver-spaces=\"true\">    Long time in the market.<\/span><span data-preserver-spaces=\"true\">    Downtrend may accelerate after additional REO properties <\/span><span data-preserver-spaces=\"true\">are added<\/span><span data-preserver-spaces=\"true\">    For mixing.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe thing to keep in mind about these foreclosure rates is <\/span><span data-preserver-spaces=\"true\">foreclosure was imposed<\/span><span data-preserver-spaces=\"true\">    remained artificially low throughout the pandemic,\u201d said Jeff Ostrowski, housing market analyst at Bankrate.<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.scrippsnews.com\/us-news\/housing\/foreclosure-activity-rises-nationwide-for-ninth-straight-month-but-experts-say-dont-panic\"><span data-preserver-spaces=\"true\">    Scripps News<\/span><\/a><span data-preserver-spaces=\"true\">. &#8220;Foreclosure is certainly financially devastating for the homeowner who goes through it. But it is also a normal and healthy part of the housing market.&#8221;<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Another 2008-style housing crash could happen <\/span><span data-preserver-spaces=\"true\">card<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Experts fear that the decline in home prices will continue until 2026 until affordability balances out, which will have devastating consequences.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Housing analyst Melody Wright explained, &#8220;We&#8217;re going to have a recovery all the way to the point where the median household income matches the median home price. And so it&#8217;s going to be worse than 2008.&#8221;<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/finance.yahoo.com\/news\/us-housing-market-poised-crash-163700554.html\"><span data-preserver-spaces=\"true\">    Yahoo! finance<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">with <\/span><span data-preserver-spaces=\"true\">Government bans big investors from buying bank-owned properties<\/span><span data-preserver-spaces=\"true\">As was the case after the 2008 crash, an opportunity may await small investors in the next few years.<\/span><\/p>\n<aside class=\"my-10 xl:my-4\">\n<p class=\"font-bold mt-0 mb-4 text-xl text-slate capitalize\">You might also like<\/p>\n<\/aside>\n<p><span data-preserver-spaces=\"true\">Wright told<\/span> <em><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.newsweek.com\/price-correction-worse-2008-housing-market-analyst-11103703\"><span data-preserver-spaces=\"true\">newsweek<\/span><\/a> <\/em><span data-preserver-spaces=\"true\">In November 2025:<\/span><\/p>\n<p><em><span data-preserver-spaces=\"true\">\u201cI see this happening over several years, with the potential for steeper declines than in previous cycles. For example, during the last cycle prices did not bottom until 2012. <\/span><span data-preserver-spaces=\"true\">I believe<\/span><span data-preserver-spaces=\"true\">    \u201cWe could start to see a serious decline in prices next year and historically speaking we could see a big decline, but it still looks like it may take several years to come down.\u201d<\/span><\/em><\/p>\n<h2><span data-preserver-spaces=\"true\">Rising mortgage debt adds to homeowner woes<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Another factor intrinsically linked to the impending increase in foreclosures is homeowners&#8217; increasing mortgage debt. <\/span><span data-preserver-spaces=\"true\">tied to the saddle<\/span><span data-preserver-spaces=\"true\">    with. Interestingly, debt is growing at the highest rates in more &#8220;affordable&#8221; states like Alaska, Delaware, Maine, Kentucky, Arkansas and Alabama, rather than in expensive coastal centers, according to an analysis of WalletHub data. <\/span><em><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.newsweek.com\/map-reveals-states-where-mortgage-debt-rising-fastest-11906156\"><span data-preserver-spaces=\"true\">newsweek<\/span><\/a> <\/em><span data-preserver-spaces=\"true\">And<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/news\/trends\/mortgage-debt-rising-alaska-delaware-alabama-study\/\"><span data-preserver-spaces=\"true\">    realtor.com,<\/span><\/a><span data-preserver-spaces=\"true\">    It shows where the next foreclosure hot spots may be.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">John Kiernan, editor of WalletHub, said<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/wallethub.com\/edu\/states-adding-the-most-mortgage-debt\/132824\"><span data-preserver-spaces=\"true\">    report<\/span><\/a><span data-preserver-spaces=\"true\">: :<\/span><\/p>\n<p><em><span data-preserver-spaces=\"true\">&#8220;Mortgage rates are the highest they have been in nearly a decade, and home prices have also seen huge increases in recent years. Even small increases in home prices can result in thousands of dollars in additional mortgage interest costs for homeowners, so it&#8217;s important to choose wisely when deciding where and when to buy a home.&#8221; <\/span><\/em><\/p>\n<h2><span data-preserver-spaces=\"true\">Small homeowners are also being affected by government cuts to federal programs.<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Homeowners who rely on the Trump administration&#8217;s latest budget proposal, which includes cuts to rental assistance programs and other HUD funding lines, could be hurt. <\/span><span data-preserver-spaces=\"true\">Section 8<\/span><span data-preserver-spaces=\"true\">    Vouchers and renters add to the potential foreclosure pile.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">in July 2025<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.nar.realtor\/washington-report\/nar-urges-full-funding-for-critical-housing-programs-in-fy-2026\"><span data-preserver-spaces=\"true\">    Letter<\/span><\/a><span data-preserver-spaces=\"true\">    Led by the House and Senate Appropriations Subcommittees on Transportation, Housing, and Urban Development, the National Association of Realtors (NAR) requested full funding for the Housing Choice Voucher Program, Fair Housing Initiatives Program, and Fair Housing Assistance Program, as well as adequate staffing of HUD&#8217;s Fair Housing Office. NAR argues that additional housing programs help leverage private sector investment.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Final Thoughts: How Small Investors Can Set Themselves Up<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The devil is in the details\u2014and in this case, the details are the data. As foreclosures increase, investors should analyze which markets are most affected based on actual foreclosures filed, rising ownership costs and increasing mortgage debt. Cross-referencing these areas \u2013 mostly in the Midwest and South \u2013 is where you&#8217;re likely to see an increase in foreclosures.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Foreclosure does not happen alone. Usually several people are involved \u2013 the bank loss mitigation department, lawyers, <\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/reobroker.com\/why-reo-properties-are-quietly-re-entering-the-2026-housing-conversation\/\"><span data-preserver-spaces=\"true\">REO Real Estate Agents and Brokers<\/span><\/a><span data-preserver-spaces=\"true\">And even the cleaning crews. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The standard approach would be to contact REO agents first. If you can prove that you can close one of their deals faster, more deals are likely to follow. Being known as an operator who delivers will get people talking, bankruptcy and foreclosure attorneys will be more likely to take your call and possibly give you information about upcoming deals.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Additionally, \u201cWe Buy Houses\u201d bandit signs, door knocking (based on prior foreclosure filings), and all the usual skip-tracing methods to reach property owners in danger will now apply as they did in 2008 \u2013 as well as new AI-enhanced search tools to speed up the process.<\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>in this article Keep your checkbook handy: A tsunami of foreclosures is about to hit the market. Although we&#8217;ve heard these rumors before, this time it may be different. That&#8217;s because President Donald Trump ended a key Biden-era foreclosure protection program was designed To help struggling homeowners stay in their homes. The continued increase in<\/p>\n","protected":false},"author":1,"featured_media":124598,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[677,947,2360,1258,29167,1357,10635,1992,576,548,508],"class_list":{"0":"post-124594","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-daily-bread","8":"tag-coming","9":"tag-deals","10":"tag-ends","11":"tag-federal","12":"tag-foreclosure","13":"tag-market","14":"tag-measures","15":"tag-prepare","16":"tag-protection","17":"tag-trump","18":"tag-wave"},"_links":{"self":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/124594","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/comments?post=124594"}],"version-history":[{"count":1,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/124594\/revisions"}],"predecessor-version":[{"id":124599,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/124594\/revisions\/124599"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media\/124598"}],"wp:attachment":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media?parent=124594"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/categories?post=124594"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/tags?post=124594"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}