U.S. foreclosure filings saw an uptick in February, but they are still down considerably from a year ago, thanks to the pandemic foreclosure moratoriums.
According to the ATTOM Data Solutions February 2021 U.S. Foreclosure Market Report, there were 11,281 properties with foreclosure filings in February, up 16 percent from January, but down 77 percent from a year ago.
“Extensions to the federal government’s foreclosure moratorium and CARES Act mortgage forbearance program continue to keep foreclosure activity historically low,” RealtyTrac Executive Vice President Rick Sharga said in a release. RealtyTrac is an ATTOM Data Solutions company. “These government actions, and the efforts of lenders and mortgage servicing companies, have helped millions of homeowners avoid foreclosure during a year-long global pandemic and a recession that resulted in 22 million lost jobs.”
The states with the highest foreclosure rates in February were Utah (one in every 3,883 homes), Delaware (one in every 5,219), Florida (one in every 6,232), Illinois (one in every 6,336), and Louisiana (one in every 7,923), according to the report.
Among cities with a population over 200,000, the highest foreclosure rates were in Provo, Utah, (one in every 787 homes), Shreveport, La., (one in every 1,951), Lake Havasu, Ariz., (one in every 2,247), Cleveland, Ohio, (one in every 3,943), and Florence, S.C., (one in every 3,980).
Foreclosure starts increased between January and February in 29 states.
“The government’s moratorium bans foreclosures on government-backed loans for homeowners, and borrowers in the forbearance program are also protected from foreclosure actions,” Sharga said. “But loans on commercial properties, investment properties, and properties that are vacant and abandoned do not always have the same protections. This could be why we’re seeing a slight increase in foreclosure starts despite the government programs.”
States that saw a drop in foreclosures from January to February include Indiana (down 75 percent), Colorado (down 75 percent), South Dakota (down 67 percent), Utah (down 67 percent), and Alabama (down 56 percent).