U.S. FORECLOSURE ACTIVITY DOUBLES ANNUALLY BUT STILL BELOW PRE-PANDEMIC LEVELS
Foreclosure Starts Up from 2021, While Foreclosure Completions Decline; Illinois, New Jersey and Delaware Post Highest Foreclosure Rates in 2022
IRVINE, Calif., Jan. 12, 2023 /PRNewswire/ -- ATTOM, a leading curator of real estate data nationwide for land and property data, today released its Year-End 2022 U.S. Foreclosure Market Report, which shows foreclosure filings— default notices, scheduled auctions and bank repossessions — were reported on 324,237 U.S. properties in 2022, up 115 percent from 2021 but down 34 percent from 2019, before the pandemic shook up the market. Foreclosure filings in 2022 were also down 89 percent from a peak of nearly 2.9 million in 2010.
Those 324,237 properties with foreclosure filings in 2022 represented 0.23 percent of all U.S. housing units, up slightly from 0.11 percent in 2021, but down from 0.36 percent in 2019 and down from a peak of 2.23 percent in 2010.
"Eighteen months after the end of the government's foreclosure moratorium, and with less than five percent of the 8.4 million borrowers who entered the CARES Act forbearance program remaining, foreclosure activity remains significantly lower than it was prior to the COVID-19 pandemic," said Rick Sharga, executive vice president of market intelligence at ATTOM. "It seems clear that government and mortgage industry efforts during the pandemic, coupled with a strong economy, have helped prevent millions of unnecessary foreclosures."
ATTOM's year-end foreclosure report provides a unique count of properties with a foreclosure filing during the year based on publicly recorded and published foreclosure filings collected in more than 3,000 counties nationwide, accounting for more than 99 percent of the U.S. population – also available for license or customized reporting. See full methodology below.
The report also includes new data for December 2022, showing there were 30,822 U.S. properties with foreclosure filings, up less than 1 percent from the previous month but up 72 percent from a year ago.
Bank repossessions decrease 70 percent since 2019
States that saw the greatest number of REOs in 2022 included Illinois (5,518 REOs); Michigan (3,669 REOs); Pennsylvania (2,741 REOs); New York (2,405 REOs); and California (2,223 REOs).
Those metropolitan statistical areas with a population greater than 1 million that saw the greatest number of REOs in 2022 included Chicago, Illinois (3,545 REOs); Detroit, Illinois (2,135 REOs); New York, New York (1,656 REOs); St. Louis, Missouri (1,395 REOs); and Philadelphia, Pennsylvania (1,302 REOs).
"Unlike foreclosure activity during the Great Recession, the majority of homes in foreclosure are not being repossessed by lenders," Sharga noted. "Our recent homeowner equity report shows that 93 percent of borrowers in foreclosure today have positive equity, which they appear to be leveraging in order to avoid a foreclosure by refinancing their mortgage or selling the property at a profit. It seems likely that this is a trend that will continue in 2023."
Foreclosure starts on the rise nationwide
States that saw the greatest number of foreclosure starts in 2022 included alifornia (27,269 foreclosure starts); Texas (23,151 foreclosure starts); Florida (22,968 foreclosure starts); Illinois (16,941 foreclosure starts); and Ohio (13,469 foreclosure starts);
Counter to the national trend, 5 states saw an increase in foreclosure starts from 2019. They included Indiana (up 81 percent); Michigan (up 10 percent); Idaho (up 8 percent); Colorado (up 2 percent); and Minnesota (up less than 1 percent).
Those metropolitan statistical areas with a population greater than 1 million that saw the greatest number of foreclosure starts in 2022, included New York, New York (15,821 foreclosure starts); Chicago, Illinois (14,360 foreclosure starts); Los Angeles, California (8,185 foreclosure starts); Philadelphia, Pennsylvania (7,286 foreclosure starts); and Miami, Florida (7,090 foreclosure starts).
Illinois, New Jersey and Delaware post highest state foreclosure rates in 2022
Rounding out the top 10 states with the highest foreclosure rates in 2022, were Nevada (0.34 percent); Florida (0.33 percent); Indiana (0.30 percent); Maryland (0.27 percent); and Michigan (0.26 percent).
Cleveland, Jacksonville, and Atlantic City post highest metro foreclosure rates in 2022
Metro areas with a population greater than 1 million, including Cleveland, Ohio and Chicago, Illinois, that had the highest foreclosure rates in 2022, were, Philadelphia, Pennsylvania (0.43 percent); Las Vegas, Nevada (0.42 percent); and Jacksonville, Florida (0.42 percent).
Average time to foreclose decreases quarterly and annually
States with the longest average time to foreclose in Q4 2022 were Hawaii (2,546 days); New Jersey (2,041 days); Louisiana (1,925 days); New York (1,828 days); and Pennsylvania (1,692 days).
Q4 2022 Foreclosure Activity High-Level Takeaways
December 2022 Foreclosure Activity High-Level Takeaways
Data and Report Licensing:
View original content to download multimedia:https://www.prnewswire.com/news-releases/us-foreclosure-activity-doubles-annually-but-still-below-pre-pandemic-levels-301719823.html
Maximizing Cloud to Build and Bundle Service Offerings
Solutions Showcase Session: Redefining Technical Support Efficiency in a World Focused on Automation and AI
Attention UCaaS Providers: What's Your Teams Strategy?