The number of properties with foreclosure filings hit 11,810 in April, down 1 percent month-over-month and 17 percent year-over-year, according to ATTOM Data Solutions April 2021 U.S. Foreclosure Market Report.
“Foreclosure activity continues to trend near historic lows as we enter the 14th month of the federal government’s foreclosure and eviction moratorium,” RealtyTrac Executive Vice President Rick Sharga said in a release. RealtyTrac is an ATTOM Data Solutions company. “Coupled with the CARES Act mortgage forbearance program, the government and mortgage servicing industry have worked together exceptionally well to prevent millions of unnecessary foreclosures. Because of these programs, and the nearly 90 percent success rate of borrowers resuming mortgage payments as they exit forbearance, a large influx of foreclosures when the programs expire seems very, very unlikely.”
In April, the states with the highest foreclosure rates were Delaware (one in every 5,700 housing units with a foreclosure filing); Nevada (one in every 5,738); Illinois (one in every 5,890); Florida (one in every 6,375); and New Jersey (one in every 6,390). Those metro areas with a population larger than 1 million with the worst foreclosure rates were Cleveland (one in every 3,550); Las Vegas (one in every 4,838); Riverside, Calif. (one in every 5,020); Jacksonville, Fla. (one in every 5,243); and Chicago (one in every 5,324).
“April 2020 was the first full month of the foreclosure moratorium, and foreclosure activity that month dropped by 75 percent compared to April 2019,” Sharga said. “Given that, it’s a little surprising to see foreclosures drop by another 24 percent compared to last year, but virtually all of the foreclosure activity today is made up of vacant and abandoned properties, or commercial loans, which often don’t have the same protections as loans on residential properties.”
States with at least 100 foreclosure starts in April that saw the greatest monthly increase in foreclosure starts included Washington (up 76 percent); New York (up 53 percent); Kentucky (up 47 percent); Alabama (up 28 percent); and Indiana (up 26 percent).