US Foreclosure Activity Doubles Annually. However, Experts Say foreclosures Are Still Below Pre-Pandemic Levels

Real estate data collector ATTOM is reporting that US foreclosure is doubling annually. ATTOM’s Year-End 2022 U.S. Foreclosure Market Report includes foreclosure filings and default notices. It also includes scheduled auctions and bank repossessions. The report states there were 324,237 U.S. properties the foreclosure process in 2022. This is up 115% from 2021. However, foreclosure activity is down 34% from pre-pandemic 2019. Foreclosure filings in 2022 were also down 89% from a peak of nearly 2.9 million in 2010.

Those 324,237 properties with foreclosure filings in 2022 represented 0.23% of all U.S. housing units. This is up slightly from 0.11% in 2021. However, they are down from 0.36% in 2019 and down from a peak of 2.23% in 2010.

The report also includes new data for December 2022. ATTOM’s new data shows there were 30,822 U.S. properties with foreclosure filings. This is up less than 1% from the previous month. however it is up 72% from a year ago.

US Foreclosure Activity May Be Doubling But Bank Repossessions Plummet 70% since 2019

Lenders repossessed 42,854 properties through foreclosure in 2022. This is up 67% from 2021. However, it is down 70% from 2019 (143,955).

States that saw the greatest number of foreclosure repossessions in 2022 included Illinois with 5,518 and Michigan with 3,669. Pennsylvania came in third place with 2,741. New York was fourth with (2,405. and California rounded out the top five with 2,223.

Those metropolitan statistical areas with a population greater than 1 million that saw the greatest number of foreclosure repossessions in 2022 included Chicago, Illinois with 3,545. Detroit had 2,135. New York City was third with 1,656 foreclosure repossessions. St. Louis, Missouri  came in fourth with 1,395 and Philadelphia rounded out the top five with 1,302.

US Foreclosure Starts Are Also On The Rise Nationwide

Lenders started the foreclosure process on 248,170 U.S. properties in 2022. This is up 169% from 2021. However, it is down 26% compared to 2019. It is also down 88% from a peak of 2,139,005 in 2009.

States that saw the greatest number of foreclosure starts in 2022 included California with 27,269. Texas had 23,151 foreclosure starts and Florida had 22,968 foreclosure starts. Illinois  came in fourth with 16,941 and Ohio topped off the top five with 13,469 foreclosure starts. 

Five metropolitan statistical areas with a population greater than 1 million also saw the greatest number of foreclosure starts in 2022. These include New York city with 15,821 foreclosure starts and Chicago with 14,360. Los Angeles came in third with 8,185. Philadelphia had 7,286 foreclosure starts). Miami closed out the top five with 7,090 foreclosure starts.

Illinois, New Jersey and Delaware Post Highest US Foreclosure Activity In 2022

States with the highest foreclosure rates in 2022 were Illinois with 0.49% of housing units with a foreclosure. New Jersey ranked 2nd with 0.45%. Delaware ranked 3rd with 0.40 percent with Ohio ranking 4th with 0.38% South Carolina rounded out the top five with 0.37%.

Rounding out the top 10 states with the highest foreclosure rates in 2022 were Nevada with 0.34% and Florida with 0.33%. Indiana came in third with 0.30%. Maryland came in fourth with 0.27%. Michigan came in fifth with 0.26%.

US Foreclosure Activity Also Saw A Decrease In Foreclosure Completion Times

Foreclosure timelines had an average of start to finish of 852 days. This is a 4% decrease and a 9% decrease from a year ago.

States with the longest average time to foreclose in Q4 2022 were Hawaii with 2,546 days and New Jersey with 2,041 days. Louisiana had the 3rd longest foreclosure times with 1,925 days. Surprisingly New York only ranked 4th. NY is still at 1,828 days where they have been for nearly a decade. Pennsylvania rounded out the top 5 with 1,692 days.