According to ATTOM’s Q3 2023 U.S. Foreclosure Market Report, there were a total of 124,539 U.S. properties with foreclosure filings—default notices, scheduled auctions or bank repossessions—up 28% from the previous quarter, and 34% from a year ago. The report also shows there were a total of 37,679 U.S. properties with foreclosure filings in September 2023, up 11% from the previous month, and up 18% from September 2022.
ATTOM found that lenders began the foreclosure process on 68,961 U.S. properties in Q3 2023, down just 1% from the previous quarter, but up 3% from a year ago—nearly reaching pre-pandemic levels.
States that had 1,000 or more foreclosure starts in Q3 2023 and saw the greatest annual increases were:
• North Carolina (up 53%)
• Louisiana (up 47%)
• Pennsylvania (up 24%)
• Alabama (up 18%)
• Nevada (up 16%)
“Foreclosures are on the rise again this quarter, as indicated by our latest foreclosure numbers,” said Rob Barber, CEO at ATTOM. ” The number of new cases filed by lenders in the third quarter did rise just a small amount from the same period last year, and actually dipped a bit quarterly—signs that the upward pattern may be easing. But foreclosure starts are nearly back to where they were two years ago when the federal government lifted a pandemic-related moratorium on most foreclosure filings. This rise in foreclosures might also be attributed to pending filings finally processing. Even with the national economic upturn and job stability, it’s evident that some homeowners are still grappling with the pandemic’s financial aftermath or encountering new challenges.”
Among the 223 metropolitan statistical areas analyzed in the report those that posted the greatest number of foreclosure starts in Q3 2023, included:
• New York, New York (4,514 foreclosure starts)
• Chicago (2,584 foreclosure starts)
• Houston, Texas (2,279 foreclosure starts)
• Los Angeles (2,273 foreclosure starts)
• Philadelphia (2,104 foreclosure starts)
Bucking the national trend of annual increases, among those metropolitan areas with a population greater than one million that saw a decline in foreclosure starts in Q3 2023 were:
• Salt Lake City (down 74%)
• Chicago (down 35%)
• Kansas City, Missouri (down 34%)
• Columbus, Ohio (down 22%)
• Milwaukee (down 21%)
Nationwide one in every 1,121 properties had a foreclosure filing in Q3 2023. States with the highest foreclosure rates in Q3 2023 were found in:
• New Jersey (one in every 595 housing units with a foreclosure filing)
• South Carolina (one in every 730)
• Delaware (one in every 739)
• Nevada (one in every 763)
• Maryland (one in every 780)
Among 223 metropolitan statistical areas analyzed in the report, those with the highest foreclosure rates in Q3 2023 were:
• Houston, Texas (one in every 371 housing units with a foreclosure filing)
• Atlantic City, New Jersey (one in every 453)
• Cleveland (one in every 459)
• Bakersfield, California (one in every 465)
• Columbia, South Carolina (one in every 503)
Lenders repossessed 11,020 U.S. properties through foreclosure (REO) in Q3 2023, up 9% from the previous quarter, and up 5% from a year ago.
States that posted the largest number of completed foreclosures in Q3 2023, included:
• California (1,277 REOs)
• Illinois (1,057 REOs)
• Pennsylvania (743 REOs)
• New York (673 REOs)
• Ohio (635 REOs)
Properties foreclosed in Q3 2023 had been in the foreclosure process an average of 778 days, down 36% from 1,212 days in the previous quarter, and down 12% from 885 days in Q3 2022, to the lowest level since Q2 2020.
States with the longest average foreclosure timelines for homes foreclosed in Q3 2023 were:
• Louisiana (3,045 days)
• Hawaii (2,498 days)
• New York (1,941 days)
• Nevada (1,690 days)
• New Jersey (1,621 days)
States with the shortest average foreclosure timelines for homes foreclosed in Q3 2023 were:
• Texas (160 days)
• Montana (169 days)
• Wyoming (177 days)
• Missouri (211 days)
• Michigan (213 days)
In the month of September 2023 alone, one in every 3,706 properties had a foreclosure filing. States reporting the highest foreclosure rates in September 2023 were Nevada (one in every 2,163 housing units with a foreclosure filing); Maryland (one in every 2,253 housing units); South Carolina (one in every 2,260 housing units); Delaware (one in every 2,380 housing units); and New Jersey (one in every 2,531 housing units).
ATTOM also reported that in September 2023, 25,042 U.S. properties started the foreclosure process, up 9% from the previous month, and up 15% from a year ago.
Nationwide, lenders completed the foreclosure process on 4,334 properties in September 2023, up 29% from the previous month, and up 24% from a year ago.