In 2010, foreclosure rates peaked amid what became known as the “foreclosure crisis.” The housing bubble, foreclosures, and mortgage-backed assets devalued due to subprime mortgage delinquencies. Since then, U.S. foreclosure rates have fallen. After the COVID-19 pandemic, thousands of individuals lost their jobs and couldn't pay their mortgages, threatening another foreclosure wave.
The government instituted a foreclosure moratorium, a mortgage forbearance program for federally backed loans, and new mortgage servicing legislation. 2020 and 2021 foreclosures were modest. In 2022, foreclosure rates increased and are predicted to rise further in 2023. High-interest rates could bring more foreclosures in 2023. As some homeowners default on their mortgages, housing inventory will rise in 2023. Homes will also spend more time on the market, resulting in an increase in overall housing inventory.
ATTOM, a leading curator of real estate data nationwide for land and property data, released its Year-End 2022 U.S. Foreclosure Market Report, which shows foreclosure filings— default notices, scheduled auctions, and bank repossessions — were reported on 324,237 U.S. properties in 2022, up 115 percent from 2021 but down 34 percent from 2019 before the pandemic shook up the market. Foreclosure filings in 2022 were also down 89 percent from a peak of nearly 2.9 million in 2010.
Those 324,237 properties with foreclosure filings in 2022 represented 0.23 percent of all U.S. housing units, up slightly from 0.11 percent in 2021, but down from 0.36 percent in 2019 and down from a peak of 2.23 percent in 2010.
ATTOM’s year-end foreclosure report also includes new data for December 2022, showing there were 30,822 U.S. properties with foreclosure filings, up less than 1 percent from the previous month but up 72 percent from a year ago.
- Lenders repossessed 42,854 properties through foreclosures (REO) in 2022, up 67 percent from 2021.
- It was down 70 percent from 2019 (143,955) and down 96 percent from a peak of 1,050,500 in 2010.
- States that saw the greatest number of REOs in 2022 included Illinois (5,518 REOs); Michigan (3,669 REOs); Pennsylvania (2,741 REOs); New York (2,405 REOs); and California (2,223 REOs).
Housing Foreclosure Stats in the United States for 2023
The housing market is a critical component of the US economy, and foreclosure statistics play a crucial role in determining its health. ATTOM, a leading curator of real estate data nationwide, recently released its April 2023 U.S. Foreclosure Market Report. The report analyzes foreclosure filings, default notices, scheduled auctions, and bank repossessions for the month of April 2023, comparing them with previous years.
Housing Foreclosure Stats in the United States
The April 2023 U.S. Foreclosure Market Report released by ATTOM, a prominent curator of land, property, and real estate data, reveals some interesting insights into the foreclosure activity nationwide. In this report, we'll explore the key findings and trends related to foreclosure starts and completed foreclosures in the United States.
Foreclosure Activity Shows a Slight Decline
According to the report, there were a total of 32,977 U.S. properties with foreclosure filings in April 2023. This figure represents a 10 percent decrease from the previous month but an 8 percent increase compared to the same period last year. While the overall numbers have risen slightly on an annual basis, the recent decline indicates a positive trend in foreclosure activity.
States with Highest Foreclosure Rates
In April 2023, several states experienced higher foreclosure rates than the national average. The top five states with the highest foreclosure rates per housing unit were:
- Illinois: 1 in every 2,221 housing units
- Maryland: 1 in every 2,283 housing units
- New Jersey: 1 in every 2,334 housing units
- South Carolina: 1 in every 2,495 housing units
- Delaware: 1 in every 2,603 housing units
These numbers highlight the regions where homeowners face a relatively higher risk of foreclosure.
Metropolitan Areas with High Foreclosure Rates
Among the 223 metropolitan statistical areas (MSAs) with a population of at least 200,000, several locations stood out with the highest foreclosure rates in April 2023. These included:
- Atlantic City, NJ: 1 in every 1,356 housing units
- Cleveland, OH: 1 in every 1,580 housing units
- Lakeland, FL: 1 in every 1,649 housing units
- Columbia, SC: 1 in every 1,651 housing units
- Chicago, IL: 1 in every 1,950 housing units
These MSAs demonstrate the localized impact of foreclosure activity on housing markets.
Foreclosure Starts Experience a Decline
Foreclosure starts, which mark the beginning of the foreclosure process, decreased by 7 percent in April 2023 compared to the previous month. Lenders initiated foreclosure proceedings on 22,455 U.S. properties during this period, indicating a positive trend in foreclosure prevention efforts.
However, it's worth noting that some states witnessed an increase in foreclosure starts. Maryland, New Mexico, Iowa, Utah, and Florida experienced the most significant monthly increases in foreclosure starts, ranging from 12 percent to 55 percent.
Major Metropolitan Areas with High Foreclosure Starts
In metropolitan areas with a population greater than 1 million, the following cities reported the highest number of foreclosure starts in April 2023:
- New York, NY: 1,711 foreclosure starts
- Chicago, IL: 1,153 foreclosure starts
- Miami, FL: 846 foreclosure starts
- Los Angeles, CA: 829 foreclosure starts
- Philadelphia, PA: 747 foreclosure starts
These figures underline the challenges faced by homeowners in densely populated areas.
Decline in Foreclosure Completions
Completed foreclosures, also known as Real Estate Owned (REO) properties, saw a 39 percent decrease in April 2023 compared to the previous month. Lenders repossessed 2,919 properties during this period. While this represents a positive trend in preventing foreclosures, there was a 3 percent increase in completed foreclosures compared to the same period last year.
States with the Most Completed Foreclosures
In April 2023, several states stood out for having the highest number of completed foreclosures or REOs. The states with the most completed foreclosures during this period were:
- Illinois: 334 REOs
- Pennsylvania: 218 REOs
- New York: 199 REOs
- Texas: 184 REOs
- California: 171 REOs
These figures shed light on the states where completed foreclosures have had a significant impact on the real estate market.
In summary, the April 2023 U.S. Foreclosure Market Report indicates a slight decline in foreclosure activity compared to the previous month. While the overall numbers have seen a slight increase on an annual basis, the recent decrease in foreclosure starts and completed foreclosures suggests a positive trend in foreclosure prevention efforts.
Certain states, such as Illinois, Maryland, New Jersey, South Carolina, and Delaware, continue to face relatively higher foreclosure rates per housing unit. Additionally, metropolitan areas like Atlantic City, Cleveland, Lakeland, Columbia, and Chicago experience localized impacts with high foreclosure rates.
It's crucial for homeowners, lenders, and policymakers to monitor foreclosure rates and identify any potential shifts or trends in the market. Efforts to prevent foreclosures and support struggling homeowners should remain a priority to ensure housing stability and minimize the negative impact on individuals and communities.
Top 10 ZIPs with Highest Foreclosure Rates in April 2023
The foreclosure market in the United States has seen fluctuations in recent years, with varying rates across different states and metro areas. According to ATTOM's April 2023 U.S. Foreclosure Market Report, there were a total of 32,977 properties with foreclosure filings in April 2023. While this number was down 10 percent from March 2023, it was up 8 percent from April 2022. This report provides valuable insights into the top 10 ZIP codes with the highest foreclosure rates during this period. Let's dive deep into the data and explore the foreclosure landscape in April 2023.
Foreclosure Rates by State
ATTOM's analysis revealed that several states had higher foreclosure rates compared to the national average of one in every 4,234 housing units. The top five states with the highest foreclosure rates in April 2023 were:
- Illinois: One in every 2,221 housing units
- Maryland: One in every 2,283 housing units
- New Jersey: One in every 2,334 housing units
- South Carolina: One in every 2,495 housing units
- Delaware: One in every 2,603 housing units
These states faced significant challenges in terms of foreclosure activity, indicating potential economic and housing market struggles in those areas.
Foreclosure Rates by Metro Areas
Among metro areas with a population of at least 200,000, the following locations experienced the highest foreclosure rates in April 2023:
- Atlantic City, NJ: One in every 1,356 housing units
- Cleveland, OH: One in every 1,580 housing units
- Lakeland, FL: One in every 1,649 housing units
- Columbia, SC: One in every 1,651 housing units
- Chicago, IL: One in every 1,950 housing units
These metro areas faced significant challenges in terms of foreclosure rates, which can impact local housing markets and communities.
Foreclosure Rates in Major Metro Areas
For metro areas with a population greater than 1 million, the following locations had the worst foreclosure rates in addition to those mentioned earlier:
- Riverside, CA: One in every 2,046 housing units
- Philadelphia, PA: One in every 2,079 housing units
- Jacksonville, FL: One in every 2,091 housing units
These cities, along with Cleveland and Chicago, experienced substantial foreclosure rates, indicating potential economic distress in these regions.
Top 10 ZIP Codes with Highest Foreclosure Rates
Within the larger context of the foreclosure market, specific ZIP codes stood out for having the highest foreclosure rates in April 2023. The top 10 ZIP codes were:
- 77303 – Conroe, TX: One in every 243 housing units
- 19438 – Harleysville, PA: One in every 293 housing units
- 33035 – Homestead, FL: One in every 324 housing units
- 60428 – Markham, IL: One in every 363 housing units
- 89143 – Las Vegas, NV: One in every 393 housing units
- 08004 – Atco, NJ: One in every 405 housing units
- 44105 – Cleveland, OH: One in every 437 housing units
- 60478 – Country Club Hills, IL: One in every 441 housing units
- 60466 – Park Forest, IL: One in every 450 housing units
- 11575 – Roosevelt, NY: One in every 457 housing units
Sources:
- https://www.attomdata.com/news/most-recent/attom-april-2023-u-s-foreclosure-market-report/
- https://www.attomdata.com/news/market-trends/foreclosures/attom-year-end-2022-u-s-foreclosure-market-report/
- https://www.attomdata.com/news/market-trends/figuresfriday/top-10-zips-with-highest-foreclosure-rates-in-april-2023/
