U.S. Foreclosure Activity on the Rise
In a report released on October 12, 2023, ATTOM, a leading real estate data curator, revealed a surge in foreclosure activity in the U.S. during Q3 2023. A total of 124,539 U.S. properties had foreclosure filings, representing a 28% increase from the previous quarter and a substantial 34% jump compared to the previous year.
September 2023 alone saw 37,679 properties receive foreclosure filings, marking an 11% increase from the preceding month and an 18% rise compared to September 2022.
Foreclosure Starts on the Rise
Lenders initiated foreclosure proceedings on 68,961 U.S. properties in Q3 2023. This figure was down 1% from the previous quarter but up 3% from the same period in the previous year, approaching pre-pandemic levels.
Noteworthy increases in foreclosure starts occurred in states with 1,000 or more filings, including North Carolina (53% increase), Louisiana (47% increase), Pennsylvania (24% increase), Alabama (18% increase), and Nevada (16% increase).
Rob Barber, CEO at ATTOM, commented that this uptick may be due to pending filings processing and homeowners still grappling with pandemic-related financial challenges despite an improving national economy.
Metropolitan Areas with High Foreclosure Starts
Among the 223 metropolitan areas analyzed, New York, New York (4,514 foreclosure starts), Chicago, Illinois (2,584), Houston, Texas (2,279), Los Angeles, California (2,273), and Philadelphia, Pennsylvania (2,104) recorded the most foreclosure starts in Q3 2023.
However, some metropolitan areas with over a million residents saw a decline in foreclosure starts in Q3 2023, such as Salt Lake City, Utah (down 74%), Chicago, Illinois (down 35%), Kansas City, Missouri (down 34%), Columbus, Ohio (down 22%), and Milwaukee, Wisconsin (down 21%).
States with Highest Foreclosure Rates
Nationally, one in every 1,121 properties received a foreclosure filing in Q3 2023. States with the highest foreclosure rates during this period were New Jersey (one in every 595 housing units), South Carolina (one in every 730), Delaware (one in every 739), Nevada (one in every 763), and Maryland (one in every 780).
Similarly, among the 223 metropolitan areas analyzed, those with the highest foreclosure rates in Q3 2023 included Houston, Texas (one in every 371 housing units), Atlantic City, New Jersey (one in every 453), Cleveland, Ohio (one in every 459), Bakersfield, California (one in every 465), and Columbia, South Carolina (one in every 503).
Increase in Bank Repossessions Nationwide
Lenders repossessed 11,020 U.S. properties through foreclosure (REO) in Q3 2023, marking a 9% increase from the previous quarter and a 5% increase from the previous year.
Decrease in Average Time to Foreclose
Properties foreclosed in Q3 2023 were in the process for an average of 778 days, marking a significant decrease of 36% from the previous quarter and a 12% decrease from Q3 2022, reaching the lowest level since Q2 2020.
Source: *Published by ATTOM Team on Oct 12, 2023
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