Foreclosure filings — including default notices, scheduled auctions or bank repossessions — increased 28% in the third quarter compared with the second quarter and were up 34% compared with the third quarter of 2022, according to ATTOM’s U.S. Foreclosure Market Report.
A total of 124,539 U.S. properties saw foreclosure filings in the third quarter, according to the firm’s data.
In September alone, 37,679 properties saw foreclosure filings – an increase of 11% compared with August and up 18% compared with September 2022.
There were 68,961 foreclosure starts in the third quarter, down 1% compared with the previous quarter but up 3% from a year ago — nearly reaching pre-pandemic levels.
States that saw the greatest annual increases in foreclosure starts included North Carolina (up 53%); Louisiana (up 47%); Pennsylvania (up 24%); Alabama (up 18%); and Nevada (up 16%).
“Foreclosures are on the rise again this quarter, as indicated by our latest foreclosure numbers,” says Rob Barber, CEO at ATTOM, in a statement. “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,” Barber says. “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.”
Metros that posted the greatest number of foreclosure starts in the third quarter included New York (4,514 foreclosure starts); Chicago (2,584 foreclosure starts); Houston (2,279 foreclosure starts); Los Angeles (2,273 foreclosure starts); and Philadelphia (2,104 foreclosure starts).
States with the highest foreclosure rates included 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).
Photo: Michal Matlon
