According to ATTOM’s July 2021 U.S. Foreclosure Market Report, there were a total of 12,483 properties with foreclosure filings in July, down 4 percent from June but up 40 percent from a year ago. Numbers reflect the last month before the government moratorium is lifted.
“The end of the government’s moratorium won’t result in millions of foreclosures, but we’re likely to see a steady increase in default activity for the balance of the year,” Rick Sharga, executive vice president of RealtyTrac, an ATTOM company, said in a release. “Much of the foreclosure volume will come from the reinstatement of foreclosure proceedings on properties that had already been in default prior to the pandemic and new foreclosure activity on vacant and abandoned properties.”
States with the highest foreclosure rates in July were Nevada (one in every 3,626 housing units with a foreclosure filing); Delaware (one in every 4,206); New Jersey (one in every 4,809); Kansas (one in every 5,609); and Illinois (one in every 6,381).
Among the 220 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates were Atlantic City, N.J. (one in every 2,290 housing units with a foreclosure filing); Macon, Ga. (one in every 2,853); and Champaign, Ill. (one in every 3,802 housing units).
Those metropolitan areas with a population greater than 1 million with the worst foreclosure rates in July included Las Vegas (one in every 2,884 housing units with a foreclosure filing); Cleveland (one in every 3,658); Indianapolis (one in every 5,774); Miami (one in every 6,166); and St. Louis (one in every 6,348).
Lenders started the foreclosure process on 6,572 properties in July, down 4 percent from June but up 45 percent from a year ago. States that had at least 100 foreclosure starts in July and saw the greatest monthly decrease in them included North Carolina (down 50 percent); California (down 31 percent); Arizona (down 27 percent); Georgia (down 17 percent); and Illinois (down 10 percent).
Major metropolitan areas that had at least 100 foreclosure starts and saw increases from last year included: New York (up 134 percent); Riverside, Calf. (up 55 percent); Chicago (up 45 percent); Atlanta (up 39 percent); and Houston (up 23 percent).
Lenders repossessed 2,418 U.S. properties through completed foreclosures (REOs) in July, up 5 percent from June and up 12 percent from last year.
“Increased numbers of foreclosure starts may not result in a similar number of bank repossessions,” Sharga said. “Homeowner equity is at an all-time high, and many financially-distressed borrowers should have the opportunity to sell their homes – probably at a profit – rather than lose them to a foreclosure auction.”
States with the greatest number of REOs in July included Illinois (230 REOs); Florida (172); Pennsylvania (149); Maryland (141); and Texas (120). Major metropolitan areas that saw the greatest number of REOs included Kansas City, Mo. (208); Chicago (133); Baltimore (92); New York (91); and Philadelphia (71).