This episode discuss the rising trend of foreclosures in the United States, linking it to homeowners grappling with rising costs for essential expenses. Several reports from ATTOM confirm that foreclosure activity, including starts and completions (known as Real Estate Owned or REOs), has increased for the eighth straight month year-over-year as of October 2025, although it remains below historic highs. Counterbalancing this trend, one academic paper suggests that mortgage forbearance programs, such as those enacted through the CARES Act, were highly effective in preventing both mortgage delinquency and foreclosure, with positive long-term effects on household financial stability. The sources also examine the nuanced policy outcomes of forbearance, noting that exit plans like balloon payments may be associated with persistently higher delinquency risk after relief ends.
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