ATTOM released its Q3 2024 U.S. Foreclosure Market Report, which showed a total of 87,108 U.S. properties with foreclosure filings during the third quarter, down 2 percent from the previous quarter and down 13 percent from a year ago.
The report also showed a total of 29,668 U.S. properties with foreclosure filings in September, down 2 percent from August and down 19 percent from a year ago.
“While we are seeing a decrease in foreclosure starts and repossessions, it’s crucial to remain vigilant, as any economic disruptions or changes in interest rates could shift the current trend,” Rob Barber, CEO of ATTOM, said in a release. “Moving forward, we anticipate foreclosure levels will stay relatively low, but there could be localized increases in areas struggling with affordability or other market pressures.”
A total of 62,380 U.S. properties started the foreclosure process in the third quarter, down less than 1 percent from the previous quarter and down 10 percent from a year ago.
States that had 1,000 or more foreclosures starts in the third quarter and saw the greatest annual decrease included, North Carolina (down 44 percent); Georgia (down 29 percent); Maryland (down 22 percent); New Jersey (down 20 percent); and South Carolina (down 19 percent).
Those major metros with a population of 200,000 or more that had the greatest number of foreclosures starts in the third quarter included, New York (3,776 foreclosure starts); Chicago (3,231 foreclosure starts); Los Angeles (2,166 foreclosure starts); Miami (2,142 foreclosure starts); and Houston (1,791 foreclosure starts).
Nationwide one in every 1,618 housing units had a foreclosure filing in the third quarter. States with the highest foreclosure rates were Illinois (one in every 904 housing units with a foreclosure filing); Nevada (one in every 922 housing units); Florida (one in every 971 housing units); Delaware (one in every 1,060 housing units); and South Carolina (one in every 1,069 housing units).
Among 224 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates were Lakeland, Fla. (one in 610 housing units); Provo, Utah (one in every 647 housing units); Macon, Ga. (one in every 649 housing units); Columbia, S.C. (one in every 663 housing units); and Atlantic City, N.J. (one in every 766 housing units).
Other major metros with a population of at least 1 million and foreclosure rates in the top 15 highest nationwide included Chicago (one in every 775 housing units); Las Vegas (one in every 796 housing units); Cleveland (one in every 819 housing units); Orlando, Fla. (one in every 859 housing units); and Riverside, Calif. (one in every 867 housing units).
Lenders repossessed 8,795 U.S. properties through foreclosure (REO) in the third quarter, up 1 percent from the previous quarter but down 12 percent from a year ago.
Those states that had the greatest number of REOs in the third quarter were California (852 REOs); Pennsylvania (715 REOs); New York (670 REOs); Illinois (668 REOs); and Michigan (559 REOs).
Properties foreclosed in the third quarter had been in the foreclosure process for an average of 815 days. This remained the same from the previous quarter but represented a 6 percent increase from the same time last year, continuing an upward trajectory since the third quarter of 2023.
States with the longest average foreclosure timelines for homes foreclosed in the third quarter were Louisiana (3,520 days); Hawaii (2,531 days); New York (2,087 days); Rhode Island (1,880 days); and Georgia (1,876 days).
States with the shortest average foreclosure timelines for homes foreclosed in the third quarter were New Hampshire (165 days); Minnesota (172 days); Texas (181 days); Michigan (189 days); and Montana (248 days).