ATTOM’s Q1 2023 U.S. Foreclosure Market Report shows a total of 95,712 U.S. properties with a foreclosure filing during the first quarter of 2023, up 6 percent from the previous quarter and up 22 percent from a year ago.
The report also shows a total of 36,617 U.S. properties with foreclosure filings in March 2023, up 20 percent from the previous month and up 10 percent from a year ago – the 23rd consecutive month with a year-over-year increase in U.S. foreclosure activity.
“Despite efforts made by government agencies and policy makers to try and reduce foreclosure rates, we are seeing an upward trend in foreclosure activity,” says Rob Barber, CEO at ATTOM. “This unfortunate trend can be attributed to a variety of factors, such as rising unemployment rates, foreclosure filings making their way through the pipeline after two years of government intervention, and other ongoing economic challenges. However, with many homeowners still having significant home equity, that may help in keeping increased levels of foreclosure activity at bay.”
A total of 65,346 U.S. properties started the foreclosure process in Q1 2023, up 3 percent from the previous quarter and up 29 percent from a year ago.
States that had the greatest number of foreclosures starts in Q1 2023 included California (6,867 foreclosure starts); Texas (6,764 foreclosure starts); Florida (5,724 foreclosure starts); New York (4,345 foreclosure starts); and Illinois (4,006 foreclosure starts).
Nationwide, one in every 1,459 housing units had a foreclosure filing in Q1 2023. States with the highest foreclosure rates were Illinois (one in every 762 housing units with a foreclosure filing); Delaware (one in every 812 housing units); New Jersey (one in every 824 housing units); Maryland (one in every 897 housing units); and Nevada (one in every 947 housing units).
Lenders repossessed 12,518 U.S. properties through foreclosure (REO) in Q1 2023, up 8 percent from the previous quarter and up 6 percent from a year ago.
Those states that had the greatest number of REOs in Q1 2023 were Michigan (1,819 REOs); Illinois (1,039 REOs); California (846 REOs); Pennsylvania (788 REOs); and New York (774 REOs).
Properties foreclosed in Q1 2023 had been in the foreclosure process an average of 950 days, the highest number of average days to foreclose since Q1 2018. This is up 12 percent from the previous quarter and up 4 percent from Q1 2022.
States with the longest average foreclosure timelines for homes foreclosed in Q1 2023 were Louisiana (2,770 days); Hawaii (2,486 days); New York (1,963 days); Kentucky (1,881 days); and New Jersey (1,697 days).
States with the shortest average foreclosure timelines for homes foreclosed in Q1 2023 were Wyoming (111 days); Minnesota (141 days); Montana (143 days); Texas (146 days); and Arkansas (157 days).
Photo by Seiji Seiji on Unsplash