The number of properties with default notices, scheduled auctions or bank repossessions in the third quarter declined 6 percent from the previous quarter and 19 percent from one year ago, according to ATTOM Data Solutions’ Q3 2019 U.S. Foreclosure Market Report.
ATTOM said the 143,105 foreclosure filings were the lowest level since the second quarter of 2005. Additionally, the foreclosure activity during the third quarter was 49 percent below the pre-recession average of 278,912 properties with foreclosure filings per quarter.
“Foreclosure activity continues to decline across the country, which is a good sign that the housing market and the broader economy remain strong – and that the lending excesses that helped bring down the economy during the Great Recession remain a memory,” ATTOM Chief Product Officer Todd Teta said in a release. “This is not to say that everything in the latest foreclosure picture is rosy.
“Some states have seen their foreclosure rates increase this year, which could cause some concern,” Teta said. “But overall, the foreclosure numbers reflect a market in which buyers can afford their homes and lenders remain careful in loaning to home buyers who have little chance of repaying.”
During the third quarter, lenders started the foreclosure process on 78,394 U.S. properties, down 8 percent from the previous quarter and down 15 percent from a year ago. Fourteen states posted year-over-year increases in foreclosure starts in the third quarter, including Montana (up 33 percent), Georgia (up 32 percent), Washington (up 16 percent); Louisiana (up 15 percent) and Michigan (up 12 percent).
ATTOM said 30 percent of metropolitan areas posted third-quarter increases in foreclosure starts, including Atlanta (up 37 percent); Columbus, Ohio (up 27 percent); San Antonio (up 24 percent); Portland, Ore. (up 22 percent); and Tucson, Ariz. (up 21 percent).
Sixteen states had third-quarter decreases in foreclosure activity, including Maryland (down 37 percent), Tennessee (down 19 percent), Delaware (down 16 percent), New Jersey (down 13 percent) and Arizona (down 11 percent).
The report identified the states with the highest foreclosure rates in the third quarter as Delaware (one in every 415 housing units with a foreclosure filing), New Jersey (one in every 436), Maryland (one in every 500), Illinois (one in every 517) and Florida (one in every 577).
ATTOM said the metropolitan areas with the highest foreclosure rates in the third quarter were Atlantic City, N.J.; Trenton, N.J.; Rockford, Ill.; Fayetteville, N.C.; and Peoria, Ill.