The number of U.S. properties with foreclosure filings increased 13% in the first half of this year, drawing closer to pre-pandemic levels, ATTOM said Thursday.
The Irvine, Calif.-based real estate data company released its midyear 2023 U.S. Foreclosure Market Report, which showed there were a total of 185,580 U.S. properties with foreclosure filings — default notices, scheduled auctions, or bank repossessions — in the first six months of 2023. That was up 13% from the same period last year, and up 185% from the same period two years ago.
“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,” said 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.”
States with the largest increase in foreclosure activity from a year earlier in the first half of the year included Maryland (up 100%); Oregon (+99%); Alaska (+95%); West Virginia (+83%); and Arkansas (+72%).
Nationwide, 0.13% of all housing units, or one in every 752 units, had a foreclosure filing in the first half the year.
States with the highest foreclosure rates in the first half were Illinois (0.25% of housing units with a foreclosure filing); New Jersey (0.24%); Maryland (0.23%); Delaware (0.23%); and Ohio (0.20%).
Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in the first half of 2023 were Cleveland (0.33% of housing units with foreclosure filings); Atlantic City (0.33%); Fayetteville, N.C. (0.3%); Columbia, S.C.. (0.29%); and Lakeland, Fla. (0.29%).
A total of 135,065 U.S. 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.
States that saw the greatest number of foreclosures starts in the first half of 2023 included California (14,217 foreclosure starts); Florida (13,837); Texas (13,419); New York (8,772); and Illinois (7,995).
Lenders foreclosed on a total of 22,672 U.S. properties in the first six months of this year, 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 foreclosed properties in the first half of 2023 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 U.S. properties with a foreclosure filing during the second quarter of 2023, up 2% from the previous quarter and up 8% from a year ago.
The national foreclosure activity total in the second quarter was 65% below the pre-recession average of 278,912 per quarter from the first quarter of 2006 to the third quarter of 2007.
Second-quarter foreclosure activity was below pre-recession averages in 173 of 223 (78%) metropolitan statistical areas with a population of at least 200,000 and sufficient historical foreclosure data, including New York; Los Angeles; Chicago; Dallas; Houston; Miami; Atlanta; San Francisco; Riverside-San Bernardino, Calif.; Phoenix; and Detroit.
Metro areas with second-quarter foreclosure activity above pre-recession averages included Honolulu, Hawaii; Richmond, Va.; Baltimore; Virginia Beach; Albany, N.Y.; and Montgomery, Ala.
Other Key Highlights:
- Properties foreclosed in the second quarter had been in the foreclosure process an average of 1,212 days, the highest number of average days to foreclose since the first quarter of 2018. That figure was up 28% from both the previous quarter and from the second quarter of 2022.
- Nationwide in June 2023, one in every 3,972 properties had a foreclosure filing.
- 24,019 U.S. properties started the foreclosure process in June 2023, up 3% from the previous month and up 8% from June 2022.
- Lenders completed the foreclosure process on 3,215 U.S. properties in June 2023, down 20% from the previous month and down 1% from June 2022.
