Foreclosure filings fell 10% in April from a month earlier, but rose 8% year over year, according to a report from ATTOM.
The Irvine, Calif.-based curator of land, property, and real estate data on Thursday released its April 2023 U.S. Foreclosure Market Report, which showed there were a total of 32,977 properties with foreclosure filings — default notices, scheduled auctions, or bank repossessions — in April, down 10% from March. The 10% drop followed a 20% month-over-month increase in March.
Nationwide, the report said, one in every 4,234 housing units had a foreclosure filing in April.
State Data
States with the highest foreclosure rates were Illinois (one in every 2,221 housing units with a foreclosure filing); Maryland (one in every 2,283); New Jersey (one in every 2,334); South Carolina (one in every 2,495); and Delaware (one in every 2,603).
Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in April were Atlantic City, N.J. (one in every 1,356 housing units with a foreclosure filing); Cleveland (one in every 1,580); Lakeland, Fla. (one in every 1,649); Columbia, S.C. (one in every 1,651); and Chicago (one in every 1,950).
“Foreclosure activity continues to stabilize and even correct itself in 2023, with April showing a 10% decrease in overall activity after a 20% increase last month,” said Rob Barber, chief executive officer at ATTOM. “While there is no apparent indication of a continued decline in the number of foreclosures, it's important to note that the month of April typically exhibits a recurring trend of decreased activity. However, this trend underscores the significance of monitoring foreclosure rates and identifying any potential market shifts or trends.”
Among the metropolitan areas with a population greater than 1 million, those with the worst foreclosure rates in April, aside from Cleveland and Chicago, included: Riverside, Calif. (one in every 2,046 housing units); Philadelphia (one in every 2,079); and Jacksonville, Fla. (one in every 2,091).
Foreclosure starts decline
Lenders started the foreclosure process on 22,455 properties in April 2023, down 7% from last month and up only 1% from a year ago.
Counter to the national trend, states that had at least 100 foreclosure starts in April and saw the greatest monthly increases included: Maryland and New Mexico (both up 55%); Iowa (up 29%); Utah (up 13%); and Florida (up 12%).
The major metropolitan areas with a population greater than 1 million that had the greatest number of foreclosure starts in April included: New York City (1,711 foreclosure starts); Chicago (1,153); Miami (846); Los Angeles (829); and Philadelphia (747).
Lenders repossessed 2,919 properties through completed foreclosures (REOs) in April, down 39% from March but up 3% from a year earlier.
States that had the greatest number of REOs in April included: Illinois (334 REOs); Pennsylvania (218); New York (199); Texas (184); and California (171).
The major metropolitan statistical areas (MSAs) with a population greater than 200,000 that saw the greatest number of REOs in April included: Chicago (259 REOs); New York City (165); Philadelphia (128); St. Louis (54); and Detroi (52 REOs).
The ATTOM U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the ATTOM Data Warehouse during the month and quarter. Some foreclosure filings entered into the database during the quarter may have been recorded in the previous quarter.
Data is collected from more than 3,000 counties nationwide, and those counties account for more than 99% of the U.S. population.
ATTOM’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned (REO) properties (that have been foreclosed on and repurchased by a bank).
