The number of properties with default notices, scheduled auctions or bank repossessions declined 11 percent in January on a month-to-month basis and 80 percent from a year ago, according to ATTOM Data Solutions.
According to ATTOM’s Foreclosure Market Report, there were a total of 9,702 U.S. properties with default notices, scheduled auctions or bank repossessions in January.
“January foreclosure activity declined at least in part due to the Biden administration’s decision to continue the foreclosure moratorium on government-backed loans through the end of March,” Rick Sharga, RealtyTrac executive vice president, said. “The moratorium and CARES Act mortgage forbearance program have effectively prevented millions of seriously delinquent loans from entering the foreclosure process. But it’s important to remember that the number of foreclosures we’re seeing right now doesn’t reflect market reality – and that’s something we’ll need to deal with once these government programs expire.”
During January, lenders repossessed 1,428 U.S. properties through completed foreclosures, down 28 percent from December and down 86 percent from last year.
ATTOM said states that saw an annual decrease in foreclosures in January 2021 included Illinois (down 86 percent); Florida (down 83 percent); Maryland (down 83 percent); California (down 82 percent); and Texas (down 82 percent).
The metropolitan statistical areas with the most foreclosures in January were Birmingham, Ala. (124); Chicago (65); Baltimore (41); Miami (40); and Beaumont, Texas (38).
The report said the states with the highest foreclosure rates in January were Delaware (one in every 4,923 housing units with a foreclosure filing); Louisiana (one in every 6,581 housing units); Florida (one in every 7,920 housing units); Indiana (one in every 8,668 housing units); and Alabama (one in every 8,707 housing units).
The metropolitan statistical areas with the highest foreclosure rates in January were Lake Charles, La. (one in every 2,050 housing units with a foreclosure filing); Birmingham, Ala. (one in every 3,053 housing units); Lafayette, La. (one in every 3,492 housing units); Provo, Utah (one in every 3,631 housing units); and Beaumont, Texas (one in every 3,871 housing units).
Other metropolitan areas with the worst foreclosure rates in January were Jacksonville, Fla. (one in every 5,657 housing units); Cleveland (one in every 5,660 housing units); Miami (one in every 6,867 housing); and Louisville, Ky. (one in every 7,541 housing units).
During January, lenders started the foreclosure process on 5,235 U.S. properties, down 12 percent from December and down 80 percent from a year ago.
ATTOM said states that had monthly increases in foreclosure starts in January included Washington (up 63 percent); Virginia (up 54 percent); North Carolina (up 32 percent); Massachusetts (up 21 percent); and Ohio (up 10 percent).