Default notices, scheduled auctions or bank repossessions in July were down 4 percent from a month ago and 83 percent from a year ago, according to a report from ATTOM Data Solutions.
According to the report, there was a total of 8,892 U.S. properties with foreclosure filings in July.
“Even as mortgage delinquency rates climb, foreclosure activity continues to be artificially low due to moratoria put in place by the federal and state governments,” RealtyTrac Executive Vice President Rick Sharga said in a release.
“It’s inevitable that there will be a significant increase in foreclosures once these moratoria have expired, although it’s unlikely that we’ll see default rates reach the levels we saw during the Great Recession,” Sharga said.
The report said the states with the highest foreclosure rates in July were Delaware (one in every 6,489 housing units with a foreclosure filing); South Carolina (one in every 7,328 housing units); Maine (one in every 7,542 housing units); New Mexico (one in every 8,255 housing units); and California (one in every 9,194 housing units).
ATTOM said the metropolitan areas with highest foreclosure rates in July 2020 were Trenton, N.J. (one in every 3,445 housing units with a foreclosure filing); McAllen, Texas (one in every 3,833 housing units); Davenport, Iowa (one in every 4,038 housing units); Dayton, Ohio (one in every 4,055 housing units); and Albuquerque, N.M. (one in every 4,452 housing units).
States posting month-over-month increases in foreclosure starts in July included Connecticut (up 54 percent); Michigan (up 42 percent); Missouri (up 34 percent); Virginia (up 32 percent); and California (up 1 percent).
“Even after default activity starts to increase, we may not see a similar increase in the number of repossessions,” Sharga said. “The combination of record levels of homeowner equity, extremely limited supply of homes for sale, and strong homebuyer demand should give many distressed homeowners an opportunity to sell their property rather than lose it to foreclosure.”