ATTOM has released its July 2021 U.S. Foreclosure Market Report, which shows there were a total of 12,483 U.S. properties with foreclosure filings – default notices, scheduled auctions or bank repossessions – down 4% from a month ago but up 40% from a year ago. Numbers reflect the last month before the government moratorium is lifted.
Nationwide, one in every 11,009 housing units had a foreclosure filing in July 2021. States with the highest foreclosure rates were Nevada (one in every 3,626 housing units with a foreclosure filing), Delaware (one in 4,206), New Jersey (one in 4,809), Kansas (one in 5,609) and Illinois (one in 6,381).
Lenders started the foreclosure process on 6,572 U.S. properties in July 2021, down 4% from last month but up 45% from a year ago. States that had at least 100 foreclosure starts in July 2021 and saw the greatest monthly decrease in foreclosure starts included North Carolina (-50%), California (-31%), Arizona (-27%), Georgia (-17%) and Illinois (-10%).
Lenders repossessed 2,418 U.S. properties through completed foreclosures (REOs) in July 2021, up 5% from last month and up 12% from last year.
“The end of the government’s moratorium won’t result in millions of foreclosures, but we’re likely to see a steady increase in default activity for the balance of the year,” says Rick Sharga, executive vice president of RealtyTrac, an ATTOM company. “Much of the foreclosure volume will come from the reinstatement of foreclosure proceedings on properties that had already been in default prior to the pandemic, and new foreclosure activity on vacant and abandoned properties.”