U.S. Foreclosure Activity Continues To Climb In Q1 2023 (2024)

Foreclosure Starts See an Annual Increase of 29 Percent;Bank Repossessions at Highest Level in Three Years

IRVINE, Calif. — April 19, 2023 — ATTOM, a leading curator of land, property, andreal estate data, today released its Q1 2023 U.S. Foreclosure Activity 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 23^rd consecutive month with a year-over-year increase in U.S. foreclosure data.

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“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).

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 dataentered 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

ATTOM provides premium property data to 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 data for 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 data collected 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 navigator and more. Also, introducing our newest innovative solution, that offers immediate access and streamlines data management – ATTOM Cloud.

Media Contact:

Christine Stricker

949.748.8428

christine.stricker@attomdata.com

Data and Report Licensing:

949.502.8313

datareports@attomdata.com

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As an expert in real estate and property data, I bring a wealth of knowledge and experience to shed light on the recent findings presented in the Q1 2023 U.S. Foreclosure Activity Report by ATTOM. With a background in analyzing trends and patterns within the real estate market, I can provide insights into the factors influencing the observed increases in foreclosure starts, bank repossessions, and other key metrics.

The report reveals a concerning trend, indicating a 29 percent annual increase in foreclosure starts and the highest level of bank repossessions in three years. As Rob Barber, the CEO of ATTOM, rightly points out, various factors contribute to this surge despite efforts by government agencies to mitigate foreclosure rates.

Let's break down the key concepts and information presented in the article:

Foreclosure Activity Overview:
- Total U.S. properties with foreclosure filings in Q1 2023: 95,712 (up 6% from the previous quarter and 22% from a year ago).
- March 2023 alone witnessed 36,617 properties with foreclosure filings (up 20% from the previous month and 10% from a year ago).
Foreclosure Starts:
- 65,346 U.S. properties started the foreclosure process in Q1 2023 (up 3% from the previous quarter and a significant 29% from a year ago).
- States with the highest number of foreclosure starts include California, Texas, Florida, New York, and Illinois.
Foreclosure Rates:
- Nationwide, one in every 1,459 housing units had a foreclosure filing in Q1 2023.
- States with the highest foreclosure rates were Illinois, Delaware, New Jersey, Maryland, and Nevada.
- Metropolitan areas with the highest foreclosure rates included Fayetteville, NC; Cleveland, OH; Atlantic City, NJ; Columbia, SC; and Bakersfield, CA.
Bank Repossessions (REO):
- Lenders repossessed 12,518 U.S. properties through foreclosure (REO) in Q1 2023 (up 8% from the previous quarter and 6% from a year ago).
- States with the greatest number of REOs in Q1 2023 were Michigan, Illinois, California, Pennsylvania, and New York.
Average Time to Foreclose:
- Properties foreclosed in Q1 2023 had an average foreclosure process duration of 950 days, the highest since Q1 2018.
- States with the longest average foreclosure timelines were Louisiana, Hawaii, New York, Kentucky, and New Jersey.
March 2023 Foreclosure Activity:
- In March 2023, one in every 3,813 properties had a foreclosure filing.
- States with the highest foreclosure rates in March 2023 were Illinois, Delaware, Nevada, Indiana, and New Jersey.
State-specific Data:
- The report provides detailed data for each state, including the total properties with filings, foreclosure rates, and percentage changes from the previous quarter and year.

This comprehensive analysis of foreclosure trends is essential for real estate professionals, policymakers, and investors to understand the current landscape and make informed decisions. The data also highlights the complex interplay of economic factors contributing to the observed increase in foreclosure activity despite intervention efforts.