Latest news with #MattLayton
Yahoo
25-07-2025
- Business
- Yahoo
Foreclosure Inquiries Hit 5-Year High — Here's Why and How It Could Affect the Housing Market
Foreclosure inquiries in the United States have been surging as more Americans fret about the potential impact of tariffs on the economy — and the U.S. housing market could suffer because of it. Read Next: Check Out: Here are more details on the growing foreclosure inquiries and how that could affect the housing market. 'Homes Are at Risk' Legal requests related to foreclosures are at their highest level since April 2020, according to a recent report from LegalShield, an Oklahoma-based provider of legal guidance and services. In a May survey of 802 U.S. adults, LegalShield found that more than 70% of homeowners and prospective buyers worry that tariffs and a potential recession could disrupt their housing plans. LegalShield also reported a 'marked drop' in home purchase and housing construction inquiries. This could foreshadow a slowdown in the housing market. 'The hard data from consumers calling lawyers matches their fears about the economy: their homes are at risk and things may get worse,' LegalShield CEO Warren Schlichting said in a press release shared with GOBankingRates. 'The other concerning finding is a drop in consumers asking for help to buy a home and a decline in questions from builders.' Be Aware: Why Are Foreclosure Fears Rising? The LegalShield survey highlighted a 'convergence of pressures,' according to Matt Layton, the company's senior vice president of consumer analytics. 'Buyers from the homebuying surge a few years ago want help with rising insurance premiums, property tax reassessments, and adjustable-rate mortgage resets,' Layton said. 'People are reaching out to LegalShield provider lawyers to save their homes, and they're scared of the next shoe to drop in the economy.' According to LegalShield, May saw the lowest level of legal activity related to housing sales since July 2023. That was also when the Federal Reserve raised interest rates most recently, LegalShield noted. Overall, the survey cited mortgage rate uncertainty, elevated home prices and inventory challenges as impacts on buyers and sellers. LegalShield's report aligns with similar research from other sources. For example, climate-risk research group First Street found that the risk of foreclosures is rising partly because of the impact of weather-related damage to homes, MarketWatch reported. This problem is exacerbated by the fact that roughly 1 in 7 U.S. homes are uninsured, per LendingTree. How Is the Housing Market Impacted? Rising foreclosures can impact the housing market in a couple of ways, according to a Federal Reserve Bank of Cleveland report published in 2010, just on the heels of the housing and financial meltdown that led to the Great Recession. The first reason is that foreclosures add to the housing supply. If there's more supply, home values could fall. The second is that homeowners who've faced foreclosure are considered credit risks who might not qualify for future home loans, which reduces the number of potential buyers. The best way for homeowners to prevent foreclosure is to get legal advice long before they really need it, according to Schlichting. 'Perhaps now more than ever, consumers need to consider how to protect themselves and their asset if they are able to buy a home in the midst of these economic headwinds,' he said. 'Instead of calling a lawyer after something goes wrong, smart homeowners are starting to get legal advice upfront — before they buy, before they renovate, before problems become expensive disasters.' More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy 6 Big Shakeups Coming to Social Security in 2025 This article originally appeared on Foreclosure Inquiries Hit 5-Year High — Here's Why and How It Could Affect the Housing Market Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-07-2025
- Business
- Yahoo
New Data: Consumer Debt Crisis Drives Legal Stress to 5-Year High
- Foreclosure inquiries rise nearly 30% year-over-year as Americans struggle to stay afloat - Personal Finance questions up almost 9% over first quarter - LegalShield Consumer Stress Legal Index highest since November 2020 ADA, Okla., July 14, 2025--(BUSINESS WIRE)--Foreclosure legal inquiries jumped nearly 30% year-over-year in the second quarter as mounting consumer debt pushed Americans to seek legal help at the highest rate since November 2020, according to new data that offers an early warning sign of household financial stress ahead of the next Federal Reserve debt report. LegalShield's Consumer Stress Legal Index (CSLI) climbed 4.4% from March to June, driven by surging foreclosure and consumer finance legal inquiries, all rooted in increased debt. "Debt is the common thread behind rising consumer stress," said Matt Layton, senior vice president of consumer analytics at LegalShield. "Whether it's missed mortgage payments, maxed-out credit cards, or mounting buy-now-pay-later balances, debt-fueled household spending is forcing people to ask a lawyer for help." Data analysis shows the Foreclosure Index jumped 13.3% during the quarter and is now nearly 28.9% higher than a year ago, marking the steepest annual increase in three years. The Consumer Finance Index also climbed 8.7% since March, as more consumers sought legal assistance for debt-related issues such as defaults and loan modifications. Americans in Debt LegalShield's CSLI report comes ahead of the Federal Reserve Bank of New York's scheduled release of second quarter household debt numbers in early August. Household debt has steadily increased since 2013 following a period of decline after the 2008 recession. Household debt balances stood at a record $18.20 trillion in Q1 2025, a 0.9% rise from the end of 2024. In particular, mortgage balances grew by $199 billion and home equity lines of credit (HELOC) increased by $6 billion. More concerning is that overall debt delinquencies increased to 4.3% at the end of Q1, the highest level since 2020, including rising delinquencies for mortgages and HELOCs, as well as student loans that began reporting to credit agencies in Q1 following a nearly five-year pause due to the pandemic. "LegalShield data tends to move ahead of official reports, and right now, it's signaling deeper trouble," said Layton. "In the coming weeks, we expect the next debt and foreclosure reports to reflect what calls to our provider lawyers are seeing — more households slipping into unsustainable financial territory." Consumers Take Action LegalShield data tracks actions taken by consumers with more than 150,000 calls to provider lawyers each month. The LegalShield dataset is built on hard data based on American households' real-time legal needs that reflect financial pressures and opportunities. This stands in contrast with polling based on opinion and sentiment. The latest rise in consumer stress reveals sharp increases in foreclosure and consumer finance inquiries, and those findings suggest that more Americans are struggling with debt, housing costs, and financial obligations, even as overall spending remains strong; the latest Personal Consumption Expenditures (PCE) data shows consumer spending is up 6.9% year over year in May. Key Research Findings: Consumer Stress Legal Index (CSLI) Highest in More Than 5 Years CSLI: 68.2 (up from 65.3 in March; up from 61.8 YoY) +4.4% quarter-over-quarter | +10.4% year-over-year The CSLI has increased four straight months, signaling intensifying economic stress for consumers despite a resilient stock market and stable employment figures. Foreclosure Spike Signals Growing Housing Strain Foreclosure Index: 46.8 (up from 41.3 in March; up from 36.3 YoY) +13.3% quarter-over-quarter | +28.9% year-over-year Rising insurance premiums, property tax reassessments, and adjustable-rate mortgage resets are pressuring homeowners. LegalShield's Foreclosure Index closely tracks foreclosure filings nationally. Rising Debt Fuels Surge in Consumer Finance Legal Issues Consumer Finance Index: 106.4 (up from 97.9 in March; up from 101.7 YoY) +8.7% quarter-over-quarter | +4.6% year-over-year Consumers are increasingly seeking legal assistance for a wide range of financial issues with a steep rise in the index in the second quarter. Analysis of the data indicates households are feeling the effects of delinquent debt, sustained interest rates and persistent inflation on everyday essentials. Bankruptcy Dips in Q2 But Remains Elevated YoY Index: 32.1 (down from 36.4 in March; up from 29.5 YoY) –11.8% quarter-over-quarter | +8.8% year-over-year Bankruptcy inquiries eased in the short term but remain significantly elevated compared to last year. The dip may reflect temporary stabilization due to seasonal factors, but high debt levels and consumer delinquencies still loom. Study Methodology LegalShield tracks an average of 150,000 monthly calls to provider lawyers based on more than 90 areas of law. That data comprises more than 35 million consumer requests for legal services dating to 2002. The CSLI is the flagship index reporting consumer stress, based on three subindices: Bankruptcy, Consumer Finance, and Foreclosure. About the Research: LegalShield Consumer Stress Legal Index As part of LegalShield's mission to ensure every person has equal access to justice, the company mines its data for insights policymakers can use to make a real, positive impact in their decision making. The LegalShield Consumer Stress Legal Index comprises three subindices that reflect the demand for various legal services. LegalShield's dataset includes more than 35 million consumer requests for legal assistance since 2002, averaging approximately 150,000 calls received monthly. The CSLI uncovers the daily challenges people are facing and provides actionable intelligence to help policymakers and industry leaders bridge those gaps. Released quarterly, view past reports on the CSLI page on About LegalShield: For more than 50 years, LegalShield has provided everyday Americans with easy and affordable access to legal advice, counsel, protection, and representation. Serving millions, LegalShield is one of the world's largest platforms for legal, identity, and reputation management services protecting individuals and businesses across North America. Founded in 1972, LegalShield, and its privacy management product, IDShield, has provided individuals, families, businesses, and employers with tools and services needed to affordably live a just and secure life. Through technology and innovation, LegalShield is disrupting the traditional legal system and transforming how and where people receive legal guidance and services, with access to hundreds of qualified, trusted attorneys and law firms. LegalShield and IDShield are products of Pre-Paid Legal Services, Inc. To learn more about LegalShield and IDShield, visit and View source version on Contacts LegalShield Media Contact: Hollon Kohtz, Director of Communicationshollonkohtz@ Sign in to access your portfolio
National Post
14-07-2025
- Business
- National Post
New Data: Consumer Debt Crisis Drives Legal Stress to 5-Year High
Article content – Foreclosure inquiries rise nearly 30% year-over-year as Americans struggle to stay afloat – Personal Finance questions up almost 9% over first quarter – LegalShield Consumer Stress Legal Index highest since November 2020 ADA, Okla. — Foreclosure legal inquiries jumped nearly 30% year-over-year in the second quarter as mounting consumer debt pushed Americans to seek legal help at the highest rate since November 2020, according to new data that offers an early warning sign of household financial stress ahead of the next Federal Reserve debt report. Article content Article content LegalShield's Consumer Stress Legal Index (CSLI) climbed 4.4% from March to June, driven by surging foreclosure and consumer finance legal inquiries, all rooted in increased debt. 'Debt is the common thread behind rising consumer stress,' said Matt Layton, senior vice president of consumer analytics at LegalShield. 'Whether it's missed mortgage payments, maxed-out credit cards, or mounting buy-now-pay-later balances, debt-fueled household spending is forcing people to ask a lawyer for help.' Article content Data analysis shows the Foreclosure Index jumped 13.3% during the quarter and is now nearly 28.9% higher than a year ago, marking the steepest annual increase in three years. The Consumer Finance Index also climbed 8.7% since March, as more consumers sought legal assistance for debt-related issues such as defaults and loan modifications. Article content Americans in Debt Article content LegalShield's CSLI report comes ahead of the Federal Reserve Bank of New York's scheduled release of second quarter household debt numbers in early August. Household debt has steadily increased since 2013 following a period of decline after the 2008 recession. Household debt balances stood at a record $18.20 trillion in Q1 2025, a 0.9% rise from the end of 2024. In particular, mortgage balances grew by $199 billion and home equity lines of credit (HELOC) increased by $6 billion. More concerning is that overall debt delinquencies increased to 4.3% at the end of Q1, the highest level since 2020, including rising delinquencies for mortgages and HELOCs, as well as student loans that began reporting to credit agencies in Q1 following a nearly five-year pause due to the pandemic. Article content 'LegalShield data tends to move ahead of official reports, and right now, it's signaling deeper trouble,' said Layton. 'In the coming weeks, we expect the next debt and foreclosure reports to reflect what calls to our provider lawyers are seeing — more households slipping into unsustainable financial territory.' Article content Consumers Take Action Article content LegalShield data tracks actions taken by consumers with more than 150,000 calls to provider lawyers each month. The LegalShield dataset is built on hard data based on American households' real-time legal needs that reflect financial pressures and opportunities. This stands in contrast with polling based on opinion and sentiment. The latest rise in consumer stress reveals sharp increases in foreclosure and consumer finance inquiries, and those findings suggest that more Americans are struggling with debt, housing costs, and financial obligations, even as overall spending remains strong; the latest Personal Consumption Expenditures (PCE) data shows consumer spending is up 6.9% year over year in May. Article content Key Research Findings: Article content The CSLI has increased four straight months, signaling intensifying economic stress for consumers despite a resilient stock market and stable employment figures. Article content Foreclosure Spike Signals Growing Housing Strain Article content +13.3% quarter-over-quarter | +28.9% year-over-year Article content Rising insurance premiums, property tax reassessments, and adjustable-rate mortgage resets are pressuring homeowners. LegalShield's Foreclosure Index closely tracks foreclosure filings nationally. Article content Rising Debt Fuels Surge in Consumer Finance Legal Issues Article content +8.7% quarter-over-quarter | +4.6% year-over-year Article content Consumers are increasingly seeking legal assistance for a wide range of financial issues with a steep rise in the index in the second quarter. Analysis of the data indicates households are feeling the effects of delinquent debt, sustained interest rates and persistent inflation on everyday essentials. Article content Bankruptcy Dips in Q2 But Remains Elevated YoY Article content Bankruptcy inquiries eased in the short term but remain significantly elevated compared to last year. The dip may reflect temporary stabilization due to seasonal factors, but high debt levels and consumer delinquencies still loom. Article content Study Methodology Article content LegalShield tracks an average of 150,000 monthly calls to provider lawyers based on more than 90 areas of law. That data comprises more than 35 million consumer requests for legal services dating to 2002. The CSLI is the flagship index reporting consumer stress, based on three subindices: Bankruptcy, Consumer Finance, and Foreclosure. Article content As part of LegalShield's mission to ensure every person has equal access to justice, the company mines its data for insights policymakers can use to make a real, positive impact in their decision making. The LegalShield Consumer Stress Legal Index comprises three subindices that reflect the demand for various legal services. LegalShield's dataset includes more than 35 million consumer requests for legal assistance since 2002, averaging approximately 150,000 calls received monthly. The CSLI uncovers the daily challenges people are facing and provides actionable intelligence to help policymakers and industry leaders bridge those gaps. Released quarterly, view past reports on the CSLI page on Article content About LegalShield: Article content For more than 50 years, LegalShield has provided everyday Americans with easy and affordable access to legal advice, counsel, protection, and representation. Serving millions, LegalShield is one of the world's largest platforms for legal, identity, and reputation management services protecting individuals and businesses across North America. Founded in 1972, LegalShield, and its privacy management product, IDShield, has provided individuals, families, businesses, and employers with tools and services needed to affordably live a just and secure life. Through technology and innovation, LegalShield is disrupting the traditional legal system and transforming how and where people receive legal guidance and services, with access to hundreds of qualified, trusted attorneys and law firms. LegalShield and IDShield are products of Pre-Paid Legal Services, Inc. To learn more about LegalShield and IDShield, visit and Article content Article content Article content Article content Article content
Business Wire
14-07-2025
- Business
- Business Wire
New Data: Consumer Debt Crisis Drives Legal Stress to 5-Year High
ADA, Okla.--(BUSINESS WIRE)--Foreclosure legal inquiries jumped nearly 30% year-over-year in the second quarter as mounting consumer debt pushed Americans to seek legal help at the highest rate since November 2020, according to new data that offers an early warning sign of household financial stress ahead of the next Federal Reserve debt report. LegalShield data offers early warning of household financial stress ahead of Federal Reserve's upcoming debt report. Share LegalShield's Consumer Stress Legal Index (CSLI) climbed 4.4% from March to June, driven by surging foreclosure and consumer finance legal inquiries, all rooted in increased debt. 'Debt is the common thread behind rising consumer stress,' said Matt Layton, senior vice president of consumer analytics at LegalShield. 'Whether it's missed mortgage payments, maxed-out credit cards, or mounting buy-now-pay-later balances, debt-fueled household spending is forcing people to ask a lawyer for help.' Data analysis shows the Foreclosure Index jumped 13.3% during the quarter and is now nearly 28.9% higher than a year ago, marking the steepest annual increase in three years. The Consumer Finance Index also climbed 8.7% since March, as more consumers sought legal assistance for debt-related issues such as defaults and loan modifications. Americans in Debt LegalShield's CSLI report comes ahead of the Federal Reserve Bank of New York's scheduled release of second quarter household debt numbers in early August. Household debt has steadily increased since 2013 following a period of decline after the 2008 recession. Household debt balances stood at a record $18.20 trillion in Q1 2025, a 0.9% rise from the end of 2024. In particular, mortgage balances grew by $199 billion and home equity lines of credit (HELOC) increased by $6 billion. More concerning is that overall debt delinquencies increased to 4.3% at the end of Q1, the highest level since 2020, including rising delinquencies for mortgages and HELOCs, as well as student loans that began reporting to credit agencies in Q1 following a nearly five-year pause due to the pandemic. 'LegalShield data tends to move ahead of official reports, and right now, it's signaling deeper trouble,' said Layton. 'In the coming weeks, we expect the next debt and foreclosure reports to reflect what calls to our provider lawyers are seeing — more households slipping into unsustainable financial territory.' Consumers Take Action LegalShield data tracks actions taken by consumers with more than 150,000 calls to provider lawyers each month. The LegalShield dataset is built on hard data based on American households' real-time legal needs that reflect financial pressures and opportunities. This stands in contrast with polling based on opinion and sentiment. The latest rise in consumer stress reveals sharp increases in foreclosure and consumer finance inquiries, and those findings suggest that more Americans are struggling with debt, housing costs, and financial obligations, even as overall spending remains strong; the latest Personal Consumption Expenditures (PCE) data shows consumer spending is up 6.9% year over year in May. Key Research Findings: Consumer Stress Legal Index (CSLI) Highest in More Than 5 Years CSLI: 68.2 (up from 65.3 in March; up from 61.8 YoY) +4.4% quarter-over-quarter | +10.4% year-over-year The CSLI has increased four straight months, signaling intensifying economic stress for consumers despite a resilient stock market and stable employment figures. Foreclosure Spike Signals Growing Housing Strain Foreclosure Index: 46.8 (up from 41.3 in March; up from 36.3 YoY) +13.3% quarter-over-quarter | +28.9% year-over-year Rising insurance premiums, property tax reassessments, and adjustable-rate mortgage resets are pressuring homeowners. LegalShield's Foreclosure Index closely tracks foreclosure filings nationally. Rising Debt Fuels Surge in Consumer Finance Legal Issues Consumer Finance Index: 106.4 (up from 97.9 in March; up from 101.7 YoY) +8.7% quarter-over-quarter | +4.6% year-over-year Consumers are increasingly seeking legal assistance for a wide range of financial issues with a steep rise in the index in the second quarter. Analysis of the data indicates households are feeling the effects of delinquent debt, sustained interest rates and persistent inflation on everyday essentials. Bankruptcy Dips in Q2 But Remains Elevated YoY Index: 32.1 (down from 36.4 in March; up from 29.5 YoY) –11.8% quarter-over-quarter | +8.8% year-over-year Bankruptcy inquiries eased in the short term but remain significantly elevated compared to last year. The dip may reflect temporary stabilization due to seasonal factors, but high debt levels and consumer delinquencies still loom. Study Methodology LegalShield tracks an average of 150,000 monthly calls to provider lawyers based on more than 90 areas of law. That data comprises more than 35 million consumer requests for legal services dating to 2002. The CSLI is the flagship index reporting consumer stress, based on three subindices: Bankruptcy, Consumer Finance, and Foreclosure. About the Research: LegalShield Consumer Stress Legal Index As part of LegalShield's mission to ensure every person has equal access to justice, the company mines its data for insights policymakers can use to make a real, positive impact in their decision making. The LegalShield Consumer Stress Legal Index comprises three subindices that reflect the demand for various legal services. LegalShield's dataset includes more than 35 million consumer requests for legal assistance since 2002, averaging approximately 150,000 calls received monthly. The CSLI uncovers the daily challenges people are facing and provides actionable intelligence to help policymakers and industry leaders bridge those gaps. Released quarterly, view past reports on the CSLI page on About LegalShield: For more than 50 years, LegalShield has provided everyday Americans with easy and affordable access to legal advice, counsel, protection, and representation. Serving millions, LegalShield is one of the world's largest platforms for legal, identity, and reputation management services protecting individuals and businesses across North America. Founded in 1972, LegalShield, and its privacy management product, IDShield, has provided individuals, families, businesses, and employers with tools and services needed to affordably live a just and secure life. Through technology and innovation, LegalShield is disrupting the traditional legal system and transforming how and where people receive legal guidance and services, with access to hundreds of qualified, trusted attorneys and law firms. LegalShield and IDShield are products of Pre-Paid Legal Services, Inc. To learn more about LegalShield and IDShield, visit and
National Post
27-06-2025
- Business
- National Post
Study Finds Foreclosure and Recession Fears Point to Housing Slowdown
Article content ADA, Okla. — Legal requests related to foreclosures have reached their highest level in five years, coinciding with a new LegalShield survey showing that more than 70 percent of homeowners and prospective buyers worry that a potential recession and tariffs could disrupt their housing plans. Article content Article content LegalShield also saw a marked drop in inquiries related to home purchases and housing construction, suggesting a potential slowdown in the overall housing market. Article content 'The hard data from consumers calling lawyers matches their fears about the economy: their homes are at risk and things may get worse,' said Warren Schlichting, LegalShield CEO. 'The other concerning finding is a drop in consumers asking for help to buy a home and a decline in questions from builders.' Article content Foreclosure Surge Reflects Mounting Economic Strain Article content Calls to LegalShield provider lawyers about foreclosures spiked in May to the highest level since April 2020. Article content 'Our data highlights a convergence of pressures: buyers from the homebuying surge a few years ago want help with rising insurance premiums, property tax reassessments, and adjustable-rate mortgage resets,' said Matt Layton, senior vice president of consumer analytics. 'People are reaching out to LegalShield provider lawyers to save their homes, and they're scared of the next shoe to drop in the economy.' Article content Signs of the Times: Home Sales and Construction Inquiries Sink Article content In a potential sign of a coming slowdown in housing transactions and construction, LegalShield saw significant declines in inquiries about buying and selling existing homes and home building. Article content LegalShield fields approximately 150,000 calls monthly from consumers nationwide covering more than 90 areas of law, including real estate-related issues. Article content In May, legal activity related to housing sales fell to its lowest level since July 2023, the last time the Federal Reserve raised interest rates. Both buyers and sellers face mounting friction amid affordability challenges due to mortgage rate uncertainty, elevated home prices and inventory challenges. Article content LegalShield's Housing Construction Index, which tracks closely with Housing Starts reported by the U.S. Census Bureau, is now at its lowest level since March 2020 and down 4.1% this year suggesting a potential slowdown in new home building. Article content Legal Problems Driving Buyers Away Article content The nationwide survey, conducted in May, found that over a third of current homeowners (38%) experience costly legal issues related to their property, and 30% of all respondents have walked away from buying a home due to preventable legal problems. Homeowners say they regret not consulting an attorney in their homebuying process (44%). Article content 'Perhaps now more than ever, consumers need to consider how to protect themselves and their asset if they are able to buy a home in the midst of these economic headwinds,' said Schlichting. 'Instead of calling a lawyer after something goes wrong, smart homeowners are starting to get legal advice upfront—before they buy, before they renovate, before problems become expensive disasters.' Article content The LegalShield survey was conducted in May 2025 and surveyed 802 adults, ages 25-80, who live in the United States. The sample was balanced by age, among other demographic variables, according to the U.S. Census. Article content About LegalShield: Article content For more than 50 years, LegalShield has provided everyday Americans with easy and affordable access to legal advice, counsel, protection, and representation. Serving millions, LegalShield is one of the world's largest platforms for legal, identity, and reputation management services protecting individuals and businesses across North America. Founded in 1972, LegalShield, and its privacy management product, IDShield, has provided individuals, families, businesses, and employers with tools and services needed to affordably live a just and secure life. Through technology and innovation, LegalShield is disrupting the traditional legal system and transforming how and where people receive legal guidance and services, with access to hundreds of qualified, trusted attorneys and law firms. LegalShield and IDShield are products of Pre-Paid Legal Services, Inc. To learn more about LegalShield and IDShield, visit and Article content Article content Article content Article content
