Foreclosure Starts See an Annual Increase of 29 Percent;
Bank Repossessions at Highest Level in Three Years
IRVINE, Calif., April 19, 2023 /PRNewswire/ --ATTOM, a leading curator of land, property, andreal estate data,today released its Q1 2023 U.S. Foreclosure Market Report, which shows a total of 95,712 U.S. properties with a foreclosure filings during the first quarter of 2023, up 6 percent from the previous quarter and up 22 percent from a year ago.
The report also shows a total of 36,617 U.S. properties with foreclosure filings in March 2023, up 20 percent from the previous month and up 10 percent from a year ago — the 23rd consecutive month with a year-over-year increase in U.S. foreclosure activity.
"Despite efforts made by government agencies and policy makers to try and reduce foreclosure rates, we are seeing an upward trend in foreclosure activity," said Rob Barber, chief executive officer at ATTOM. "This unfortunate trend can be attributed to a variety of factors, such as rising unemployment rates, foreclosure filings making their way through the pipeline after two years of government intervention, and other ongoing economic challenges. However, with many homeowners still having significant home equity, that may help in keeping increased levels of foreclosure activity at bay."
Foreclosure starts increase nationwide
A total of 65,346 U.S. properties started the foreclosure process in Q1 2023, up 3 percent from the previous quarter and up 29 percent from a year ago.
States that had the greatest number of foreclosures starts in Q1 2023 included, California (6,867 foreclosure starts); Texas (6,764 foreclosure starts); Florida (5,724 foreclosure starts); New York (4,345 foreclosure starts); and Illinois (4,006 foreclosure starts).
Those major metros with a population of 200,000 or more that had the greatest number of foreclosures starts in Q1 2023 included, New York, New York (4,674 foreclosure starts); Chicago, Illinois (3,549 foreclosure starts); Los Angeles, California (2,210 foreclosure starts); Houston, Texas (2,120 foreclosure starts); and Philadelphia, Pennsylvania (1,985 foreclosure starts).
Highest foreclosure rates in Illinois, Delaware, and New Jersey
Nationwide one in every 1,459 housing units had a foreclosure filing in Q1 2023. States with the highest foreclosure rates were Illinois (one in every 762 housing units with a foreclosure filing); Delaware (one in every 812 housing units); New Jersey (one in every 824 housing units); Maryland (one in every 897 housing units); and Nevada (one in every 947 housing units).
Among 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in Q1 2023 were Fayetteville, North Carolina (one in every 526 housing units); Cleveland, Ohio (one in 582); Atlantic City, New Jersey (one in 661); Columbia, South Carolina (one in 671); and Bakersfield, California (one in 688).
U.S. Historical Total Foreclosure Activity
Other major metros with a population of at least 1 million and foreclosure rates in the top 15 highest nationwide, included Cleveland, Ohio at No.2; Chicago, Illinois at No. 6; Las Vegas, Nevada at No. 10; Philadelphia, Pennsylvania at No. 12; and Riverside, California at No. 14.
Bank repossessions increase 8 percent from last quarter
Lenders repossessed 12,518 U.S. properties through foreclosure (REO) in Q1 2023, up 8 percent from the previous quarter and up 6 percent from a year ago.
U.S. Completed Foreclosures (REOs)
Those states that had the greatest number of REOs in Q1 2023 were Michigan (1,819 REOs); Illinois (1,039 REOs); California (846 REOs); Pennsylvania (788 REOs); and New York (774 REOs).
Average time to foreclose increases 12 percent from previous quarter
Properties foreclosed in Q1 2023 had been in the foreclosure process an average of 950 days, the highest number of average days to foreclose since Q1 2018. This is up 12 percent from the previous quarter and up 4 percent from Q1 2022.
Average Days to Complete Foreclosure
States with the longest average foreclosure timelines for homes foreclosed in Q1 2023 were Louisiana (2,770 days); Hawaii (2,486 days); New York (1,963 days); Kentucky (1,881 days); and New Jersey (1,697 days).
States with the shortest average foreclosure timelines for homes foreclosed in Q1 2023 were Wyoming (111 days); Minnesota (141 days); Montana (143 days); Texas (146 days); and Arkansas (157 days).
March 2023 Foreclosure Activity High-Level Takeaways
- Nationwide in March 2023, one in every 3,813 properties had a foreclosure filing.
- States with the highest foreclosure rates in March 2022 were Illinois (one in every 2,050 housing units with a foreclosure filing); Delaware (one in every 2,161 housing units); Nevada (one in every 2,178 housing units); Indiana (one in every 2,223 housing units); and New Jersey (one in every 2,299 housing units).
- 24,234 U.S. properties started the foreclosure process in March 2023, up 19 percent from the previous month and up 8 percent from March 2022.
- Lenders completed the foreclosure process on 4,791 U.S. properties in March 2023, up 25 percent from the previous month and up 9 percent from March 2022.
U.S. Foreclosure Market Data by State – Q1 2023
Rate Rank | State Name | Total Properties with Filings | 1/every X HU (Foreclosure Rate) | %∆ Q4 2022 | %∆ Q1 2022 |
U.S. | 95,712 | 1,459 | 5.51 | 22.28 | |
32 | Alabama | 1,025 | 2,223 | -17.87 | -10.32 |
27 | Alaska | 152 | 2,078 | 20.63 | 192.31 |
21 | Arizona | 1,717 | 1,780 | 19.40 | 3.68 |
22 | Arkansas | 717 | 1,899 | -9.13 | 62.59 |
14 | California | 10,208 | 1,404 | -3.74 | 23.84 |
29 | Colorado | 1,146 | 2,142 | 9.25 | 38.07 |
13 | Connecticut | 1,097 | 1,392 | 14.99 | 33.13 |
2 | Delaware | 548 | 812 | 3.59 | 41.97 |
District of Columbia | 179 | 1,923 | 22.60 | 280.85 | |
10 | Florida | 8,233 | 1,186 | 16.83 | 1.06 |
12 | Georgia | 3,222 | 1,358 | 9.97 | 24.31 |
31 | Hawaii | 252 | 2,210 | -6.32 | 29.90 |
42 | Idaho | 212 | 3,501 | 15.85 | 69.60 |
1 | Illinois | 7,100 | 762 | -5.26 | 3.48 |
7 | Indiana | 2,949 | 987 | 15.33 | 22.11 |
16 | Iowa | 966 | 1,457 | -3.59 | 32.69 |
44 | Kansas | 313 | 4,065 | 17.23 | 15.93 |
46 | Kentucky | 453 | 4,389 | 1.12 | 8.63 |
24 | Louisiana | 1,052 | 1,964 | 10.39 | 15.99 |
41 | Maine | 227 | 3,250 | -36.94 | -39.14 |
4 | Maryland | 2,806 | 897 | 29.61 | 89.21 |
34 | Massachusetts | 1,314 | 2,268 | -15.72 | 36.02 |
8 | Michigan | 4,436 | 1,029 | 41.23 | 38.41 |
30 | Minnesota | 1,139 | 2,169 | 7.15 | 47.35 |
33 | Mississippi | 584 | 2,256 | 15.64 | 34.87 |
37 | Missouri | 1,063 | 2,617 | 14.18 | -7.65 |
47 | Montana | 97 | 5,284 | -23.02 | 25.97 |
35 | Nebraska | 336 | 2,502 | -8.45 | 25.84 |
5 | Nevada | 1,341 | 947 | 14.13 | 14.13 |
36 | New Hampshire | 246 | 2,587 | 25.51 | 27.46 |
3 | New Jersey | 4,539 | 824 | 3.77 | -4.48 |
18 | New Mexico | 595 | 1,575 | 24.74 | 58.24 |
11 | New York | 6,349 | 1,331 | 1.03 | 97.48 |
17 | North Carolina | 3,064 | 1,525 | -6.78 | 35.28 |
49 | North Dakota | 47 | 7,875 | -42.68 | 34.29 |
6 | Ohio | 5,313 | 985 | 4.88 | 0.45 |
15 | Oklahoma | 1,213 | 1,436 | 25.44 | 26.88 |
38 | Oregon | 654 | 2,751 | -1.21 | 173.64 |
20 | Pennsylvania | 3,269 | 1,752 | -1.80 | 20.98 |
40 | Rhode Island | 174 | 2,765 | -2.79 | 23.40 |
9 | South Carolina | 2,234 | 1,041 | -9.48 | 2.95 |
50 | South Dakota | 25 | 15,535 | 19.05 | 13.64 |
28 | Tennessee | 1,436 | 2,097 | 21.28 | 32.47 |
19 | Texas | 7,221 | 1,583 | 13.59 | 44.94 |
25 | Utah | 576 | 1,968 | 6.67 | 3.23 |
48 | Vermont | 43 | 7,756 | 13.16 | 79.17 |
26 | Virginia | 1,740 | 2,067 | 0.58 | 35.20 |
45 | Washington | 751 | 4,222 | -4.57 | 16.43 |
43 | West Virginia | 212 | 4,054 | 4.95 | 168.35 |
39 | Wisconsin | 984 | 2,763 | 8.25 | 0.10 |
23 | Wyoming | 143 | 1,901 | -4.67 | 53.76 |
Report methodology
The ATTOM U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the ATTOM Data Warehouse during the month and quarter. Some foreclosure filings entered into the database during the quarter may have been recorded in the previous quarter. Data is collected from more than 3,000 counties nationwide, and those counties account for more than 99 percent of the U.S. population. ATTOM's report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). For the annual, midyear and quarterly reports, if more than one type of foreclosure document is received for a property during the timeframe, only the most recent filing is counted in the report. The annual, midyear, quarterly and monthly reports all check if the same type of document was filed against a property previously. If so, and if that previous filing occurred within the estimated foreclosure timeframe for the state where the property is located, the report does not count the property in the current year, quarter or month.
About ATTOM
ATTOMprovides premium property datato power products that improve transparency, innovation, efficiency, and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood datafor more than 155 million U.S. residential and commercial properties covering 99 percent of the nation's population. A rigorous data management process involving more than 20 steps validates, standardizes, and enhances the real estate datacollected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 30TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, property data APIs,real estate market trends, property navigatorand more. Also, introducing our newest innovative solution, that offers immediate access and streamlines data management – ATTOM Cloud.
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SOURCE ATTOM
Foreclosure activity in the U.S. has taken an alarming turn, as revealed by ATTOM's Q1 2023 U.S. Foreclosure Market Report. The report highlights a concerning 29 percent annual increase in foreclosure starts, with 95,712 U.S. properties facing foreclosure filings in the first quarter of 2023, up 6 percent from the previous quarter and 22 percent from a year ago.
What's particularly noteworthy is the insight provided by Rob Barber, ATTOM's CEO, who attributes this trend to multiple factors, including rising unemployment rates, foreclosure filings progressing through the pipeline after two years of government intervention, and ongoing economic challenges. Despite efforts by government agencies and policymakers, the foreclosure situation seems to persist.
Foreclosure starts have surged nationwide, with 65,346 U.S. properties initiating the foreclosure process in Q1 2023, reflecting a 3 percent increase from the previous quarter and a substantial 29 percent surge from the previous year. The states most heavily impacted include California, Texas, Florida, New York, and Illinois, each witnessing significant foreclosure starts.
The report also sheds light on the states with the highest foreclosure rates, with Illinois, Delaware, New Jersey, Maryland, and Nevada topping the list. Notably, one in every 1,459 housing units faced a foreclosure filing in Q1 2023, emphasizing the widespread impact of the issue.
Bank repossessions have seen an 8 percent increase from the last quarter, with lenders reclaiming 12,518 U.S. properties through foreclosure in Q1 2023. The states with the greatest number of repossessions include Michigan, Illinois, California, Pennsylvania, and New York.
The average time to foreclose has seen a 12 percent increase from the previous quarter, with properties foreclosed in Q1 2023 spending an average of 950 days in the foreclosure process—the highest since Q1 2018. This indicates a prolonged and challenging process for homeowners facing foreclosure.
States with the longest average foreclosure timelines include Louisiana, Hawaii, New York, Kentucky, and New Jersey. On the flip side, Wyoming, Minnesota, Montana, Texas, and Arkansas boast the shortest average foreclosure timelines.
In March 2023 alone, one in every 3,813 properties had a foreclosure filing. Illinois, Delaware, Nevada, Indiana, and New Jersey reported the highest foreclosure rates during this period. Additionally, 24,234 U.S. properties initiated the foreclosure process in March 2023, marking a 19 percent increase from the previous month.
The detailed state-wise breakdown in the report further emphasizes the severity of the situation. States like Illinois, New York, Texas, and California, with their high population metros, are significantly impacted, ranking in the top 15 nationwide for foreclosure rates.
In conclusion, the Q1 2023 U.S. Foreclosure Market Report by ATTOM paints a grim picture of the current foreclosure landscape, with various economic factors contributing to the distressing trend. The comprehensive data and analysis provided in the report serve as a valuable resource for understanding the magnitude of the issue and its regional variations.
