U.S. foreclosures reached pre-pandemic levels nationwide in August, according to the latest U.S. Foreclosure Market Report released by ATTOM.
There were a total of 34,501 U.S. properties with foreclosure filings — default notices, scheduled auctions, or bank repossessions — up 14% from last month and up 118% from a year ago. Lenders began the foreclosure process on 23,952 U.S. properties in August, up 12% from last month and 187% from a year ago.
“Two years after the onset of the COVID-19 pandemic, and after massive government intervention and mortgage-industry efforts to prevent defaults, foreclosure starts have almost returned to 2019 levels,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “August foreclosure starts were at 86% of the number of foreclosure starts in August 2019, but it’s important to remember that even then, foreclosure activity was relatively low compared to historical averages.”
States with at least 100 foreclosure starts in August, and which saw the greatest monthly increases in foreclosure starts, included: Oklahoma (up 80%), Tennessee (up 74%); Virginia (up 64%); Arkansas (up 53%); and Washington (up 50%).
The counties that had the most foreclosure starts for August were in Cook County, Ill. (798 foreclosure starts); Los Angeles County (740 foreclosure starts); Harris County, Texas (465 foreclosure starts); Suffolk County, N.Y. (297 foreclosure starts); and Riverside County, Calif. (280 foreclosure starts).
One in every 4,072 housing units had a foreclosure filing nationwide in August. States that had the highest foreclosure rates were Illinois (one in every 1,926 housing units with a foreclosure filing); Delaware (one in every 2,387 units); South Carolina (one in every 2,417 units); New Jersey (one in every 2,441 units); and Florida (one in every 2,950 units).
Metropolitan areas with a population of at least 200,000 and that had the highest foreclosure rates in August were Peoria, Ill. (one in every 869 housing units with a foreclosure filing); Jacksonville, N.C. (one in every 968 units); Bakersfield, Calif. (one in every 1,454 units); South Bend, Ind. (one in every 1,478 units); and Rockford, Ill. (one in every 1,496 units).
Metropolitan areas with a population greater than 1 million and had the highest foreclosure rates were Cleveland, Ohio (one in every 1,820 housing units); Chicago (one in every 1,877 units); Jacksonville, Fla. (one in every 2,074 units); Riverside, Calif. (one in every 2,091 units); and Orlando, Fla. (one in every 2,445 units).
Lenders repossessed 3,938 U.S. properties through completed foreclosures (REOs) in August, up 28% from last month and up 59% from last year.
“Repossessions are likely to continue running below pre-pandemic levels for several reasons, most importantly that over 90% of borrowers in foreclosure have positive equity in their homes, and would benefit from selling these properties at a profit rather than risk losing everything to a foreclosure auction or lender repossession,” Sharga said.
States with the greatest number of REOs in August were Illinois (493 REOs); New York (337 REOs); Michigan (326 REOs); Pennsylvania (260 REOs); and California (189 REOs).
Among major metropolitan areas with a population greater than 1 million that saw the greatest monthly increase in REOs in August were Kansas City, Mo. (up 967%); New York (up 90%); Philadelphia (up 28%); and Detroit (up 23%).
