"Foreclosure activity continues to trend near historic lows as we enter the 14th month of the Federal Government's foreclosure and eviction moratorium," said Rick Sharga, executive vice president at RealtyTrac, an ATTOM Data Solutions company. "Coupled with the CARES Act mortgage forbearance program, the government and mortgage servicing industry have worked together exceptionally well to prevent millions of unnecessary foreclosures. Because of these programs, and the nearly 90 percent success rate of borrowers resuming mortgage payments as they exit forbearance, a large influx of foreclosures when the programs expire seems very, very unlikely."
The states that had the highest foreclosure rates include Delaware at one in every 5,700 housing units, Nevada at one in every 5,738 housing units and Illinois at one in every 5,890 units.
"April 2020 was the first full month of the foreclosure moratorium, and foreclosure activity that month dropped by 75 percent compared to April 2019," Sharga noted. "Given that, it's a little surprising to see foreclosures drop by another 24 percent compared to last year, but virtually all of the foreclosure activity today is made up of vacant and abandoned properties, or commercial loans, which often don't have the same protections as loans on residential properties."
Additionally, the report revealed that states that had at least 100 foreclosure starts in April 2021 and saw the greatest monthly increase in foreclosure starts included Washington (up 76%); New York (up 53%); Kentucky (up 47%); Alabama (up 28%) and Indiana (up 26%).
Click here to read more from the report.
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