A total of 185,580 U.S. properties had foreclosure filings in the first six months of 2023, up 13% from the same time period a year ago and up 185% from the same time period two years ago, according to a new report from ATTOM.
ATTOM’s Midyear U.S. Foreclosure Market Report found that nationwide, 0.13% of all housing units (one in every 752) had a foreclosure filing in the first half of 2023. The states with the highest foreclosure rates were Illinois (0.25%), New Jersey (0.24%), Maryland (0.23%), Delaware (0.23%) and Ohio (0.20%).
In addition, the report found that a total of 135,065 properties started the foreclosure process in the first six months of 2023, up 15% from the first half of last year and up 36% from the first half of 2020. The states with the greatest number of foreclosure starts were California (14,217), Florida (13,837), Texas (13,419), New York (8,772) and Illinois (7,995).
Key highlights:
- Among the 223 metro areas with a population of at least 200,000, those with the highest foreclosure rates were Cleveland, Ohio (0.33%); Atlantic City, New Jersey (0.33%); Fayetteville, North Carolina (0.3%); Columbia, South Carolina (0.29%); and Lakeland, Florida (0.29%).
- Lenders foreclosed on a total of 22,672 properties, up 9% from the first half of 2022 and up 133% from the first half of 2021, but down 40% from the first half of 2020.
- States that posted the greatest number of REOs included Michigan (2,423), Illinois (2,059), Pennsylvania (1,420), California (1,362) and New York (1,350).
- There were a total of 97,608 properties with foreclosure filings during Q2 2023, up 2% from the previous quarter and up 8% from a year ago.
- The national foreclosure activity total in Q2 2023 was 65% below the pre-recession average of 278,912 per quarter from Q1 2006 to Q3 2007.
- Foreclosure activity in Q2 2023 was below pre-recession averages in 173 out of 223 (78%) metro areas with a population of at least 200,000 and sufficient historical foreclosure data.
- Metro areas with Q2 foreclosure activity above pre-recession averages included Honolulu, Hawaii; Richmond, Virginia; Baltimore, Maryland; Virginia Beach, Virginia; Albany, New York; and Montgomery, Alabama.
- Properties foreclosed in Q2 2023 had been in the foreclosure process an average of 1,212 days, the highest number of average days to foreclose since Q1 2018. That figure was up 28% from last quarter and up 28% from Q2 2022.
- States with the longest average foreclosure timelines for homes foreclosed in Q2 2023 were Michigan (2,601 days), Louisiana (2,252 days), New York (1,966 days), Hawaii (1,934 days) and Kentucky (1,921 days).
- States with the shortest average foreclosure timelines for homes foreclosed in Q2 2023 were Wyoming (104 days), Minnesota (145 days), Montana (160 days), Texas (162 days) and Missouri (170 days).
Major takeaway:
“Similar to the first half of 2022, foreclosure activity across the United States maintained its upward trajectory, gradually approaching pre-pandemic levels in the first half of 2023,” stated ATTOM CEO Rob Barber. “Although overall foreclosure activity remains below historical norms, the notable surge in foreclosure starts indicates that we may continue to see a rise in foreclosure activity in the coming years.”
For the full report, click here.
