House foreclosure filings are rising in a number of states as home prices, living costs, and mortgage rates continue to soar, according to newly released data.
ATTOM---a leading curator of land, property, and real estate data---recently released its February 2023 US Foreclosure Market Report, which showed there were at least 30,528 properties in the country with foreclosure filings during the period.
Lenders repossessed 3,831 properties in the US through completed foreclosures in February 2023. This marks a 45% increase from the number of repossessions reported in a year earlier.
"The annual uptick in US foreclosure activity hints at shifting dynamics within the housing market," Rob Barber, CEO at ATTOM, said. "These trends could signify evolving financial landscapes for homeowners, prompting adjustments in market strategies and lending practices. We continue to closely monitor these trends to comprehend their complete effect on foreclosure activity."
Where Are Foreclosure Rates Rising?
Nationwide, one in every 4,574 housing units had foreclosure filings in February 2023. Among states, Indiana had the highest foreclosure rate (one in every 2,956 housing units). It was followed by Nevada (one in every 2,854 housing units); Illinois (one in every 2,443 housing units); Maryland (one in every 2,390 housing units); and New Jersey (one in every 2,271 housing units with a foreclosure filing).
On completed foreclosures (REOs), South Carolina saw the biggest rise, with a 51% year-over-year increase. This was followed closely by Missouri at 50%, Pennsylvania at 46%, Texas at 7%, and Indiana at 0.8%.
Regionally, among the 224 areas with a population of at least 200,000, the places that saw the greatest number of REOs in February 2023 were Chicago with 207, Philadelphia with 182, New York City with 173, Pittsburg with 105, and Detroit with 88.
REOs refer to properties that have gone through the foreclosure process and are now owned by the lender, which is typically a bank. The number of REOs in an area indicates how many foreclosures have been completed and how many properties could be listed for sale as bank-owned properties.
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