Foreclosure Filings On The Rise As Economic Pressures Mount
ATTOM reports that foreclosure filings were up in January 2024.
In a snapshot of the U.S. housing market, ATTOM's January 2024 Foreclosure Market Report indicates an uptick in foreclosure activity. With 33,270 properties facing foreclosure filings — including default notices, scheduled auctions, and bank repossessions — the numbers mark a 5% increase from the previous year and a 10% rise from the previous month.
“We observed a slight uptick in foreclosure filings, which may be partially attributed to the typical post-holiday progression of filings through the legal system,” said Rob Barber, CEO at ATTOM. “However, other external factors may be at play such as escalating interest rates, inflation, employment shifts and other market dynamics. We remain vigilant in monitoring these trends to understand their full impact on foreclosure activity.”
The report highlights a 1% year-over-year increase in lender repossessions (REOs), totaling 3,954 properties in January 2024. This represents a 13% increase from the previous month, marking the first month-over-month rise in completed foreclosures since July 2023. States like Michigan, Minnesota, California, Pennsylvania, and Missouri saw significant jumps in REO activity, with Michigan's REOs skyrocketing by 200%.
Major metropolitan areas also felt the impact, with Detroit, Chicago, New York, Philadelphia, and San Francisco leading in the number of REOs. Detroit notably topped the charts with 609 REOs.
Delaware, Nevada, and Indiana experienced the highest foreclosure rates nationwide, with Delaware having one in every 2,269 housing units facing a foreclosure filing. Metropolitan statistical areas with significant populations, such as Spartanburg, SC, and Columbia, SC, reported the highest foreclosure rates among cities, with Spartanburg experiencing one in every 1,579 housing units receiving a foreclosure filing.
The process of foreclosure was initiated on 21,770 U.S. properties in January, a 6% increase from the prior month and a 5% rise from the previous year. States like California, Texas, and Florida led in foreclosure starts, highlighting a growing concern in some of the nation's most populous states.