Part 10/15:
Looking ahead, Melody predicts a significant wave of foreclosures by Q2 2026, once mortgage defaults and delinquency rates hit critical levels. She cites Black Knight data showing a 17% year-over-year increase in foreclosures, and warns that further government and legal maneuvers—including delays and mortgage modifications—may slow the process but won't prevent the inevitable.
She stresses that “distress” and “fire sales” will be the primary mechanisms of downward pressure, with most distressed properties originating from overleveraged speculators, new homeowners, or inherited estates—especially in regions like Florida, the Midwest, and the Northeast.