Default notices, scheduled auctions or bank repossessions in August increased 11 percent from July but were down 81 percent from a year ago, according to ATTOM Data Solutions.
ATTOM’s August 2020 U.S. Foreclosure Market Report identified a total of 9,889 U.S. properties with foreclosure filings.
“While foreclosure activity remains over 80 percent below 2019 totals, there was a significant increase in foreclosure starts in August compared to July,” said Rick Sharga, executive vice president at RealtyTrac. “Several states - including Florida and New York - that have had foreclosure moratoria in place have recently loosened some of their restrictions, which may explain the unexpected bump in the monthly numbers.”
The report identified the states with the highest foreclosure rates in August as South Carolina (one in every 6,798 housing units); Florida (one in every 7,338 housing units); Iowa (one in every 7,924 housing units); Maryland (one in every 8,435 housing units); and New Mexico (one in every 9,145 housing units).
ATTOM said the metro areas with the highest foreclosure rates in August were Shreveport, La. (one in every 3,253 housing units with a foreclosure filing); Ocala, Fla. (one in every 3,283 housing units); Cedar Rapids, Iowa (one in every 3,429 housing units); Lakeland, Fla. (one in every 3,516 housing units); and McAllen, Texas (one in every 3,535 housing units).
The report said foreclosure starts in August were down annually in every state, but several states posted double digit month-over-month increases in foreclosure starts, including Florida, New York, Indiana, Mississippi and New Jersey.
“Many courthouses across the country have been closed or have had their caseloads dramatically reduced during the pandemic,” Sharga said. “It will be interesting to see if foreclosure starts continue to increase as these courthouses begin to re-open.”
During August, the metro areas with the greatest number of foreclosure starts were New York (444 foreclosure starts); Miami (255 foreclosure starts); Los Angeles (246 foreclosure starts); Chicago (201 foreclosure starts); and Houston (195 foreclosure starts).