ATTOM released its July 2021 U.S. Foreclosure Market Report, finding a total of 12,483 U.S. properties with foreclosure filings—default notices, scheduled auctions or bank repossessions—down 4% from last month but up 40% from a year ago. The month-over-month dip reflects the last month before the government moratorium was lifted.
The details:
– States with the highest foreclosure rates were Nevada (one in every 3,626 housing units with a foreclosure filing); Delaware (one in every 4,206 units); New Jersey (one in every 4,809 units); Kansas (one in every 5,609 units); and Illinois (one in every 6,381 units).
– States with at least 100 foreclosure starts in July 2021 and the greatest monthly decrease in foreclosure starts included: North Carolina (down 50%); California (down 31%); Arizona (down 27%); Georgia (down 17%); and Illinois (down 10%).
– Lenders repossessed 2,418 U.S. properties through completed foreclosures (REOs) in July 2021, up 5% from June and up 12% YoY.
The takeaway:
Sources say the end of the moratorium will not likely result in “millions of foreclosures.” Instead, we can expect a steady increase in default activity for the remainder of the year.
Rick Sharga, executive vice president of RealtyTrac, an ATTOM company said, “Much of the foreclosure volume will come from the reinstatement of foreclosure proceedings on properties that had already been in default prior to the pandemic, and new foreclosure activity on vacant and abandoned properties.”
“Increased numbers of foreclosure starts may not result in a similar number of bank repossessions,” Sharga added. “Homeowner equity is at an all-time high, and many financially-distressed borrowers should have the opportunity to sell their homes—probably at a profit—rather than lose them to a foreclosure auction.”
