HONOLULU (KHON2) — The foreclosure activity in the U.S. continues to get closer to pre-pandemic levels, according to ATTOM, a leading curator of real estate data. The company released its Q3 2022 U.S. Foreclosure Market Report on Thursday. Nationwide in Q3, one in every 1,517 properties had a foreclosure filing.
“Foreclosure activity is reflecting other aspects of the economy, as unemployment rates continue to be historically low, and mortgage delinquency rates are lower than they were before the COVID-19 outbreak,” said Rick Sharga, executive vice president of market intelligence for ATTOM, in Thursday’s announcement.
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The report shows there were a total of 92,634 U.S. properties with foreclosure filings, including default notices, scheduled auctions or bank repossessions, which is up 3% from the previous quarter and 104% from a year ago.
There was a decrease in average time for properties foreclosed in Q3. These properties had been in the foreclosure process for an average of 885 days, according to ATTOM.
States with longest average foreclosure timelines for homes foreclosed in Q3
- Hawaii — 2,121 days
- New Jersey — 2,002 days
- Louisiana — 1,963 days
- Kansas — 1,848 days
- New York — 1,808 days
States with shortest average foreclosure timelines for homes foreclosed in Q3
- Minnesota — 113 days
- Mississippi — 167 days
- Texas — 168 days
- Nebraska — 168 days
- Missouri — 172 days
States with highest foreclosure rates in Q3
- Illinois — 1 in every 694 housing units with a foreclosure filing
- Delaware — 1 in every 825 housing units
- New Jersey — 1 in every 855 housing units
- South Carolina— 1 in every 971 housing units
- Ohio — 1 in every 1,027 housing units
States with greatest number of foreclosure starts in Q3
- California — 7,368 foreclosure starts
- Florida — 6,671 foreclosure starts
- Texas — 6,217 foreclosure starts
- Illinois — 4,702 foreclosure starts
- New York — 3,997 foreclosure starts
According to ATTOM, bank repossessions increased nationwide in Q3, with lenders repossessing 10,515 U.S. properties through foreclosure (REO), up 18% from the previous quarter and up 39% from a year ago.
“Very few of the properties entering the foreclosure process have reverted to the lender at the end of the foreclosure,” said Sharga. “In fact, nearly three times more homes were repossessed by lenders in the second quarter of 2019 than in the second quarter of 2022.
Sharga added that this may be an indication borrowers are leveraging their equity and selling their homes versus risking equity loss in a foreclosure auction.
To read the full ATTOM U.S. Foreclosure Market Report, click here.
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The report provides a count of the total number of properties with at least one foreclosure filing entered into the ATTOM Data Warehouse during the month and quarter.