Property data curator ATTOM released its Year-End 2023 U.S. Foreclosure Market Report, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 357,062 U.S. properties in 2023, up 10 percent from 2022 and up 136 percent from 2021.
However, filings were down 28 percent from 2019, before the pandemic shook up the market. Foreclosure filings in 2023 were also down 88 percent from a peak of nearly 2.9 million in 2010.
Those 357,062 properties with foreclosure filings in 2023 represented 0.26 percent of all U.S. housing units, up slightly from 0.23 percent in 2022, but down from 0.36 percent in 2019 and down from a peak of 2.23 percent in 2010.
“Reflecting on 2023, we see the recent rise in foreclosure activity as a market correction rather than a cause for alarm. It signals a return to more traditional patterns after years of volatility,” ATTOM CEO Rob Barber said in a release. “Our data suggests that while foreclosure activity may fluctuate, it’s unlikely to approach the highs seen in the last decade. Instead, we foresee a market that is more reflective of broader economic trends, with foreclosure filings becoming a more predictable aspect of the housing landscape. This shift offers a silver lining — the opportunity for investors, homeowners, and industry professionals to plan and strategize with greater confidence and insight."
Lenders started the foreclosure process on 270,222 U.S. properties in 2023, up 9 percent from 2022, up 193 percent from 2021, but down 20 percent from 2019 and down 87 percent from a peak of 2,139,005 in 2009.
States that saw the greatest number of foreclosure starts in 2023 included California (29,180 foreclosure starts); Texas (28,533 foreclosure starts); Florida (27,427 foreclosure starts); New York (17,330 foreclosure starts); and Illinois (13,764 foreclosure starts).
Counter to the national trend, five states saw an increase in foreclosure starts from 2019. They included Indiana (up 73 percent); Idaho (up 70 percent); Michigan (up 15 percent); Nevada (up 10 percent); and Minnesota (up 9 percent).
Those metropolitan statistical areas with a population greater than 1 million that saw the greatest number of foreclosure starts in 2023 included New York (18,464 foreclosure starts); Chicago (11,620); Houston (9,476); Los Angeles (8,835); and Philadelphia (8,224).
Lenders repossessed 42,090 properties through foreclosures (REO) in 2023, down 2 percent from 2022 but down 71 percent from 2019 (143,955) and down 96 percent from a peak of 1,050,500 in 2010, ATTOM added.
States that saw the greatest number of REOs in 2023 included Illinois (3,814 REOs); Michigan (3,634); Pennsylvania (2,853); California (2,633); and New York (2,538).
Those metropolitan statistical areas with a population greater than 1 million that saw the greatest number of REOs in 2023 included Chicago (2,505 REOs); New York (2,045); Detroit (1,795); Philadelphia (1,130); and Baltimore (872).
States with the highest foreclosure rates in 2023 were New Jersey (0.46 percent of housing units with a foreclosure filing); Illinois (0.42 percent); Delaware (0.41 percent); Maryland (0.40 percent); and Ohio (0.38 percent). Rounding out the top 10 were South Carolina (0.38 percent); Nevada (0.37 percent); Florida (0.37 percent); Connecticut (0.35 percent); and Indiana (0.32 percent).
Among 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in 2023 were Cleveland (0.62 percent of housing units with a foreclosure filing); Atlantic City, N.J. (0.62 percent); Lakeland, Fla. (0.56 percent); Columbia, S.C. (0.55 percent); and Fayetteville, N.C. (0.51 percent).
Metro areas with a population greater than 1 million, including Cleveland, that had the highest foreclosure rates in 2023 were: Philadelphia (0.48 percent); Jacksonville, Fla. (0.47 percent); Las Vegas (0.46 percent); and Chicago (0.45 percent).
U.S. properties foreclosed in the fourth quarter had been in the foreclosure process an average of 720 days, a 7 percent decrease from the previous quarter and 16 percent decrease from a year ago.
States with the longest average time to foreclose in the fourth quarter were Louisiana (2,641 days); Hawaii (2,031 days); New York (2,006 days); Nevada (1,816 days); and Kentucky (1,643 days).