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Foreclosure Filings Up 23% Year-Over-Year

Katie Jensen
Jun 15, 2021

ATTOM released its May 2021 U.S. Foreclosure Market Report, which shows a total of 10,821 U.S. properties with foreclosure filings.

ATTOM released its May 2021 U.S. Foreclosure Market Report, which shows a total of 10,821 U.S. properties with foreclosure filings (including default notices, scheduled auctions, or bank repossessions) down 8% from a month earlier, but up 23% from a year ago. Foreclosure starts, meaning the initial notice of default on a mortgage, grew 36% year-over-year. 

Nationwide, 1 in every 12,700 housing units had a foreclosure filing in May of 2021, and states with the highest foreclosure rates were Nevada, Delaware, Illinois, Florida, and New Jersey. In Nevada, 1 in every 5,535 housing units had a foreclosure filing; in Delaware, 1 in every 5,854 housing units had a foreclosure filing; in Illinois, 1 in every 5,903 housing units; in Florida, 1 in every 7,207 housing units; and in New Jersey, 1 in every 7,679 housing units. 

The metropolitan areas with the highest foreclosure rates were Champaign, IL, (1 in every 2,420 units) Peoria, IL, (1 in every 3,030 housing units) Cleveland, OH, (1 in every 3,715 housing units) Bakersfield, CA, (1 in every 3,774 housing units) and Mobile, AL, (1 in every 4,174 housing units). 

Rick Sharga, RealtyTrac executive vice president, said, “While the increase in foreclosure activity is significant, it's important to keep these numbers in perspective. Last year's numbers were extraordinarily low due to the implementation of the foreclosure moratorium and the CARES Act mortgage forbearance program, so the year-over-year numbers look a lot more dramatic than they are. And May foreclosure activity actually declined compared to April.” 

Lenders have started the foreclosure process on 5,909 properties in May 2021, which is down 7% from last month and down 36% from a year ago. However, this counters the national trend in which several states show peak numbers in foreclosure starts. The states that had at least 100 foreclosure starts and saw the greatest increase in foreclosure starts in May 2021 were Ohio (up 96%), Alabama (up 78%), Michigan (up 65%), Georgia (up 61%), and Virginia (up 50%).

Lenders also repossessed up to 1,315 properties through completed foreclosures in May 2021, which is down 15% from last month and down 54% year over year. The states with the greatest number of REOs for May 2021 were California (154 REOs), Florida (148 REOs), Illinois (144 REOs), Texas (83 REOs), and Ohio (70 REOs).

“As foreclosure activity begins to return to normal levels, RealtyTrac will continue to serve as the premier foreclosure listing and search portal for investors and agents looking to gain a competitive edge in the distressed market,”  said RealtyTrac general manager, Ohan Antebian.

To read ATTOM’s latest U.S. Foreclosure Market Report, including charts and graphs, click the link. 

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