ATTOM: Foreclosure rates return to pre-pandemic levels

ATTOM’s 2022 U.S. Foreclosure Market Report shows that foreclosure filings are up 118% compared to this time last year.

In August alone, US lenders initiated foreclosure proceedings on 23,952 properties. Such high numbers have not been seen before the COVID-19 pandemic.

“Two years after the onset of the COVID-19 pandemic and after massive government intervention and the mortgage industry’s efforts to prevent defaults, foreclosure initiations have returned to roughly 2019 levels.” said Rick Sharga, ATTOM’s Executive VP of Marketing Intelligence. “It is important to remember that August foreclosure starts were 86% of his number of foreclosure starts in August 2019, yet foreclosure activity was still relatively low compared to historical averages. .”

States with the largest increase in foreclosure initiations include Oklahoma, Tennessee, Virginia, Arkansas, and Washington, while Cook County, Illinois, had the highest number of foreclosure initiations with 798. Illinois also had one of the highest foreclosure rates in 2022. Of the 4,072 homes that have filed for foreclosure.

Among metropolitan areas with a population of 200,000 or more, Peoria, Illinois had the most foreclosures (1 in 968 homes). Among metropolitan areas with a population greater than 1 million, Cleveland, Ohio had the highest number of foreclosures (1 in 1,820).

In addition to the increase in foreclosure starts and filings, completed foreclosures (REOs) are also up 59% compared to August 2021.

“Foreclosures are likely to remain below pre-pandemic levels for several reasons,” Shalga added. “Most importantly, more than 90% of his foreclosed borrowers have positive equity in their homes and would rather sell these properties than risk losing everything in a foreclosure auction or a lender’s foreclosure. It means we can profit from it.”

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