Lending reports

Foreclosures increased by more than 50% from 2021 to 2022, reports ATTOM

ATTOM released its October 2022 U.S. Foreclosure Market Report, which shows there were a total of 32,376 U.S. properties with foreclosure filings — notices of default, scheduled auctions or bank foreclosures — up 57% compared to a year ago, but only up 2% from the previous month.

Nationwide, one in 4,339 homes had a foreclosure filing in October 2022. The states with the highest foreclosure rates were Illinois (one in 1,779 homes with a foreclosure filing ); Delaware (one in 2,178 housing units); New Jersey (one in 2,305 housing units); South Carolina (one in 2,711 housing units); and Nevada (one in 2,755 housing units).

“While foreclosure activity continues to slowly and steadily increase since the end of the government moratorium, we are still well below normal levels,” says Rick Sharga, executive vice president of business intelligence at ATTOM. “Foreclosure activity in October was about 59% of pre-pandemic numbers, and at its current rate, foreclosures are unlikely to return to historically normal levels until mid-2023.”

Of the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in October 2022 were Fayetteville, North Carolina (one in 1,135 dwellings with a foreclosure record); St. Louis, Mo. (one in 1,177 housing units); Jacksonville, North Carolina (one in 1,203 housing units); Cleveland, Ohio (one in 1,624 housing units); and Spartanburg, SC (one of 1,729 housing units).

Metropolitan areas with populations over 1 million with the worst foreclosure rates in October 2022, including St. Louis, Mo. and Cleveland, Ohio, were Las Vegas, Nevada (one in 2,062 housing units) ; Riverside, California (one in 2,127 housing units); and Chicago, Illinois (one in 2,154 housing units).

Lenders repossessed 4,156 U.S. properties through completed foreclosures (REOs) in October 2022, up 18% from last month and 37% from last year.

“October repossessions were just under 31% of what they were in October 2019,” Sharga adds. “This suggests that foreclosed borrowers were able to sell their homes ahead of the auction, and that a higher percentage of auction properties are being sold to third-party buyers. A further flood of REO homes seems increasingly unlikely to happen so soon.

States with the most REOs in October 2022 included Illinois (1,100 REOs), New York (273 REOs), Pennsylvania (251 REOs), Michigan (239 REOs), and California (194 REOs) .

The major metropolitan statistical areas (MSAs) with populations over 1 million that saw the highest number of REOs in October 2022 included St. Louis, Missouri (841 REOs); Chicago, Ill. (220 REO); New York, NY (147 REO); Philadelphia, Pennsylvania (124 REO); and Detroit, Michigan (98 REO).

Lenders began foreclosures on 21,829 U.S. properties in October 2022, down less than 1% from last month but up 103% from a year ago.

The states with the most foreclosures in October 2022 are California (2,594 foreclosures), Texas (1,901 foreclosures), Florida (1,528 foreclosures), New York (1,362 foreclosures) and Illinois (1,300 seizures).

Major metropolitan areas with populations over 1 million that saw the highest number of foreclosures in October 2022 included New York, NY (1,655 foreclosures); Chicago, Illinois (1,107 foreclosure openings); Los Angeles, CA (816 seizure starts); Philadelphia, Pennsylvania (788 foreclosure starts); and Miami, Florida (583 seizures).

Image: “Foreclosure” by taberandrew is licensed under DC BY 2.0 .