Property data curator ATTOM released its Q3 2023 U.S. Foreclosure Market Report, which shows there were a total of 124,539 U.S. properties with foreclosure filings, up 28 percent from the second quarter and 34 percent from a year ago.
The report also shows there were a total of 37,679 U.S. properties with foreclosure filings in September, up 11 percent from August and up 18 percent from September 2022.
Lenders started the foreclosure process on 68,961 U.S. properties in the third quarter, down 1 percent from the second quarter but up 3 percent from a year ago — nearly reaching pre-pandemic levels.
States that had 1,000 or more foreclosure starts in the third quarter and saw the greatest annual increases were North Carolina (up 53 percent); Louisiana (up 47 percent); Pennsylvania (up 24 percent); Alabama (up 18 percent); and Nevada (up 16 percent).
“Foreclosures are on the rise again this quarter, as indicated by our latest foreclosure numbers,” Rob Barber, CEO at ATTOM, said in a release. “The number of new cases filed by lenders in the third quarter did rise just a small amount from the same period last year and actually dipped a bit quarterly – signs that the upward pattern may be easing. But foreclosure starts are nearly back to where they were two years ago when the federal government lifted a pandemic-related moratorium on most foreclosure filings. This rise in foreclosures might also be attributed to pending filings finally processing. Even with the national economic upturn and job stability, it’s evident that some homeowners are still grappling with the pandemic’s financial aftermath or encountering new challenges.”
Among the 223 metropolitan statistical areas analyzed in the report, those that posted the greatest number of foreclosure starts in the third quarter included New York (4,514 foreclosure starts); Chicago (2,584); Houston (2,279); Los Angeles (2,); and Philadelphia (2,104).
Counter to the national trend of annual increases, among those metropolitan areas with a population greater than 1 million that saw a decline in foreclosure starts in the third quarter were Salt Lake City (down 74 percent); Chicago (down 35 percent); Kansas City, Mo. (down 34 percent); Columbus, Ohio (down 22 percent); and Milwaukee (down 21 percent).
Nationwide, one in every 1,121 properties had a foreclosure filing in the third quarter. States with the highest foreclosure rates were New Jersey (one in every 595 housing units with a foreclosure filing);South Carolina (one in every 730); Delaware (one in every 739); Nevada (one in every 763); and Maryland (one in every 780).
Among 223 metropolitan statistical areas analyzed in the report, those with the highest foreclosure rates in the third quarter were Houston (one in every 371 housing units with a foreclosure filing); Atlantic City, N.J. (one in every 453); Cleveland (one in every 459); Bakersfield, Calif. (one in every 465); and Columbia, S.C. (one in every 503).
Lenders repossessed 11,020 U.S. properties through foreclosure (REO) in the third quarter, up 9 percent from the second quarter and up 5 percent from a year ago.
States that posted the largest number of completed foreclosures in the third quarter included California (1,277 REOs); Illinois (1,057 REOs); Pennsylvania (743 REOs); New York (673 REOs); and Ohio (635 REOs).
Properties foreclosed in the third quarter had been in the foreclosure process an average of 778 days, down 36 percent from 1,212 days in the second quarter and down 12 percent from 885 days in the third quarter 2022, to the lowest level since the second quarter 2020.
States with the longest average foreclosure timelines for homes foreclosed in the third quarter were Louisiana (3,045 days); Hawaii (2,498 days); New York (1,941 days); Nevada (1,690 days); and New Jersey (1,621 days).
States with the shortest average foreclosure timelines for homes foreclosed in the third quarter were Texas (160 days); Montana (169 days); Wyoming (177 days); Missouri (211 days); and Michigan (213 days).